Good observation and well said. Since medical insurance and savings were invented, medical costs rocketed through the atmosphere to space. The medical academia are very happy to support and charge more for medical education too. The doctors having spent hundreds of thousands on their education are pressured to recover their costs too. So they felt no qualms about jacking up their fees as high as the medical insurance system can take.
Sorry can't up the points you deserve since just upped you recently.
I hope you reach 1,000 points soon. You are much more deserving than Alamaking, in my opinion. I mean, your quality of opinion is so much better.
Insurance will lead to escalating medical costs? Insurance is merely a way of pooling resources. The users pay premiums. Those who remain healthy pay for those who fall ill. The insurance company cannot pay doctors more than what they collect in premiums. In fact, part of the premiums go into company profits. If medical costs escalate, then premiums must go up in order for the user to enjoy the same level of financial coverage. It is therefore increased medical costs that lead to increasing insurance premiums, not the other way round.
Lets say there are no insurance instead. The medical costs are dictated by supply and demand. But because the wealthy can afford it, they will ensure that costs never fall below a certain level. This would mean the poor will not be able to afford it. Because there is no pooling of premiums via an insurance mechanism, the poor are denied medical treatment.
Bottom line: insurance does not increase cost. It is demand that increases cost. Medical cost is rising because of demand, not because of insurance.