Qualified Opinions Getting the Government Out of Healthcare
Jan 3, 2025
Michael F. Cannon, director of health policy studies at the Cato Institute, shares insightful perspectives on government involvement in healthcare. He explores the origins of medical licensing, arguing it creates monopolies that elevate costs and limit access. Cannon discusses the historical roots of tax breaks for employer-sponsored insurance, emphasizing how these distort markets. The conversation also highlights the impact of FDA regulations on drug safety, and the potential of market innovations like telehealth to improve care accessibility.
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Bismarck's Healthcare Gamble
- In the 1880s, before government licensing of doctors, German Chancellor Otto von Bismarck created the first government-run healthcare system.
- This was despite the fact that at the time, doctors were more likely to harm than help patients.
Licensing's Origins
- Government licensing of doctors was initially driven by physicians seeking to eliminate competition from homeopaths and other practitioners.
- This licensing, while intending to improve quality, has had negative consequences.
Licensing's Negative Impact
- Medical licensing increased prices, reduced quality, and made healthcare less accessible by creating barriers to entry.
- This led to fewer doctors, especially in rural areas, and disproportionately affected minorities.