A familiar mantra about why health insurance is so expensive is that the cost of healthcare is expensive. I have always disagreed with this statement. It is the third-party financing through employers that drives the underlying costs — not vice versa.
Our current financing system provides inferior healthcare for many and inhibits adoption of new and emerging technologies. This often results in poorer health outcomes and, at times, even death. It also creates false vendor markets created by misplaced incentives.
