In a March 9th ABC News piece titled “Why Health Care Costs Keep Rising: What You Need to Know,” Huma Khan identifies five “drivers of cost increases” including: medical technology; administrative costs; disease and aging; medical malpractice; and prescription drugs. This is a decent list; technology and an aging population are definitely big contributors to rising health care costs.
But as Jason Fodeman and Robert Book detail, none of the factors mentioned above are the true driver health care costs:
To a large extent, increased health care spending is a consequence of this third-party payment system. In recent decades, the