Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (935927)	5/20/2016 12:37:31 AM
From: i-node	2 Recommendations Recommended By PKRBKR Stock Puppy Read Replies (2) \| Respond to of 1576421

>> Hardly the reason why HMO costs are so sky high. There are several reasons our prices increase so much. And I don't know which is the worst. But the correlation between the increasing use of price controls by government (for Medicare & Medicaid) vs. the rate of increase in costs is unmistakable. It is not complicated. During periods of inflation when an economic segment is price controlled, prices will try to find other outlets for their increases. If a physician can collect status quo on government health care, yet, inflation is driving costs of living up 5% a year, the portion of costs that are recovered through non price controlled services will go up at a faster pace. Maybe 8% a year. Maybe 10%. But not 5%. Year after year this effect is compounded. This is basic microeconomics. Theory of the firm, under which the firm must produce a return on investment to continue to exist. If costs increase, then prices must increase. If only some prices can be increased because government is controlling the others, then the increase will be higher for the items that can be increased. This isn't complicated. It is an ordinary product of price controls.