In today’s NYT, Tyler Cowen identifies the key point about healthcare reform (my emphasis added):
It’s time to consider which forms of managed care — relabeled, if necessary — are likely to maintain the flow of innovation while keeping costs under control.
I would go further. Civilization has moved forward because of innovations that cut costs and extended capabilities simultaneously. The current structure of healthcare seems to be producing ‘innovations’ that raise costs and don’t actually increase life expectancy. I think that the main goal of healthcare reform should be to extend coverage and give more incentives for innovations that actually cut costs while producing better results.