It's not inappropriate. The point is that when people perceive something as free, they intrinsically opt for the most expensive option. They also will get costly tests and procedures that have at best an extremely remote chance of being useful. The whole reason tort reform, which the original author did mention, is needed is because doctors know this and then prescribe expensive, unneeded tests simply to cover their asses. Between that perverse incentive (which he did address) and the patient's lack of fiscal accountability, enough people have an MRI done every time they sneeze to have a huge impact on health care prices.
When insurance companies instituted even very small patient copays on non-generics, usage rates of generics skyrocketed. Just having to pay $5 more (for a product that actually costs hundreds more, but is chemically identical) aligned people with their economic incentives and caused a massive shift in consumer behavior.
Brand name pharma companies fought back by giving vouchers to doctors to pass out to patients that covered their co-pays. Brand name medicine market share went right back up. Insurance companies have no effective way to combat vouchers and are forced instead to raise health care rates.
Also you're just plain wrong because you're applying rational thought to people who are in a panicked state. When someone has a health problem, they'll do anything and everything to fix it. We all value our own lives as effectively worth infinite dollars, which makes any treatment rational from our perspective. Society, on the other hand, cannot afford to be so generous.
When insurance companies instituted even very small patient copays on non-generics, usage rates of generics skyrocketed. Just having to pay $5 more (for a product that actually costs hundreds more, but is chemically identical) aligned people with their economic incentives and caused a massive shift in consumer behavior.
Brand name pharma companies fought back by giving vouchers to doctors to pass out to patients that covered their co-pays. Brand name medicine market share went right back up. Insurance companies have no effective way to combat vouchers and are forced instead to raise health care rates.
Also you're just plain wrong because you're applying rational thought to people who are in a panicked state. When someone has a health problem, they'll do anything and everything to fix it. We all value our own lives as effectively worth infinite dollars, which makes any treatment rational from our perspective. Society, on the other hand, cannot afford to be so generous.