SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : The Trump Presidency
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TimF who wrote (65922)4/10/2018 1:37:44 PM
From: neolib  Read Replies (1) of 359797
 
As I argue for healthcare, and it applies to education as well, indirection in payment is a major problem for cost containment. If you pay tax to fund education or pay your healthcare insurance premium to cover your medical expenses, when you show up to consume the resource, you have no motivation to contain costs. You have already "paid" and now you want the best service. Which then drives a cost spiral. Its more a problem in healthcare because of the lack of price transparency as well as the perception of risk than it is in education, but I think the same does apply to education.

How can you design a payment system that does two important things 1) risk averages across the population and 2) amortizes payments monthly over a lifetime (or at least significant fraction thereof). It is a bit different between education and healthcare, but a similar issue exists in both. College is a one off event (generally) and now quite expensive. It happens earlier in life. Health issues tend to be weighted toward the end, but again, they are now quite expensive. Healthcare has a bigger individual spread because of the statistics of many diseases, so risk averaging is more important here. But almost all such systems discourage individuals being vigilant about cost containment. After all, the best Universities open doors for employment, and the best Hospitals have better outcomes. Who wants cheap??
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News