It’s this easy: 1) When the State subsidizes something it gets more of it. The state is proposing effectively subsidizing health care consumers.

2) If the State taxes something it gets less of it. The state is proposing effectively taxing health care providers.

Right now we are on the edge of the State subsidizing health care. If this happens one can expect what happened in the realm of health care to happen in the realm of apartment rentals when renters are subsidized.

With rent controls the prices of apartments are artificially kept low by mandate of the state. This is effectually subsidizing those who rent. The result is fivefold. First, there is an increase in demand since people will always flock to that which is being given to them for a price that is far less than the value of that which they are receiving. Second, there is a decline in available rentals since new rentals are not built since the owners of potential rentals will not be able to recoup their cost of building the rental because of the rent controls. Third, the quality of rentals declines because those who do own rentals are disinclined to invest in repairing their rentals since they know that no amount of repair is going to increase what they can charge for their rental. Fourth, with an increase in demand and a decrease in availability, shortages soon follow as there are more people chasing rentals than there are rentals to be found. Fifthly, as a result of all this, rentals must be rationed by those who are in charge of the rental controls.

Look for the same phenomena to happen if the state implements health care controls. With health care controls the prices of health care will be kept artificially low by mandate of the state. This is effectively subsidizing those who access health care.

First, there will be an increase in demand for health care since people will always flock to that which is being given to them for a price that is far less than the value of that which they are receiving. Because people will not be spending their own money they will take every opportunity to access the subsidized health care.

Second, there will soon be a decline in available health care since potential providers of health care services will get out of or not go into the health care industry since they will not be able to recoup their cost of learning how to be a health care provider, since their earning potential will be effectively capped.

Third, the quality of health care will decline because those who do health care will be disinclined to invest in keeping current on new health care practices since they will know that no amount of advancement on the learning curve will increase what they can charge for their health care services.

Fourth, with an increase in demand and a decrease in availability, health care shortages soon will follow as there are more people chasing health care than there will be health care to be found. Health care controls will assure long waits for both necessary and elective surgery.

Fifthly, as a result of all this, health care must be rationed by those who are in charge of the health care controls. In a market economy health care is rationed by prices, but since prices can no longer do the work of rationing due to subsidies, some other entity will have to do the work of rationing. That entity will be the state. The state will dictate what health care can be accessed by the patient and what health care will not be accessed by the patient. For those sitting in the back of the class, this is called centralized planning.

Sixghly, a health care Black Market will arise. This Black Market will be the true market as non-Government interrupted supply and demand will dictate the prices and so provide the non-centralized rationing mechanism.

When the state enters into health care controls they are subsidizing the consumer (thus assuring more consumers) while at the same time effectively taxing the producer (health care providers) by means of demanding increased work for less reward.

Now, while what I’ve explained may take time to kick into gear, due to the state’s ability to create money, you’ve been told what’s likely to happen, so don’t come complaining to me when loved ones die because they couldn’t get the health care they needed because the state didn’t deem them worthy of the expense for what they needed.

The beginning of fixing our health care problems is to be found in:

1) Getting the government out of health care completely. Allowing the government to regulate health care because it is broke is like allowing the bull in the china shop to run the china shop because some of the china was found broken.

2) Reconnecting the consumer with the cost of their health care. As it stands now, the consumer, because their health care is considered a benefit that attends their employment, isn’t careful about how he spends his health care dollars since he sees no correlation between the cost of the health care and the damage that the cost does to his pocketbook. Health care savings accounts are an idea whose time is passed.

3) Tort reform. Much of the cost associated with health care is built into health care expense in order to cover insurance for malpractice that doctors must carry due to ambulance chasers looking to make a buck. A cap should be put on malpractice cases and those lawyers and clients who bring malpractice cases and lose should be required to split the attorney cost for the defense. But as lawyers inhabit Washington D.C. like demons inhabit hell, don’t look for this to happen.