The Simple Accountant

The Post Office, FedEx and UPS Model for Health Insurance

The problems with healthcare inefficiency amount to two basic principles, which remain the same whether provided through public or private systems:

(1) The systems pay for inputs rather than results, which only produces an incentive for consumption of resources, and (2) third party payers result in consumers who have no incentive to moderate consumption - something analagous to an "all you can eat buffet" type of situation (see for example Arnold Kling on health care).

Of course, we might also mention the abysmal personal health habits of a sizable portion of the US population - many of whom are the same people who can ill afford medical care or insurance premiums.