A lot of reporting and commentary—here and elsewhere—has been devoted to detailing the numerous deleterious consequences of national health care reform: higher costs, higher taxes, less freedom, and less competition. One we haven’t gotten into as much is what will happen to medical innovation. Here is what the Cato Institute found:
New research by the Cato Institute shows that America generates more medical innovations than any other country, and in some cases, more than all other countries combined. Medical innovation may be more important than covering the uninsured or controlling health care spending, inasmuch as a treatment must first be invented before its costs can be reduced and its use extended to everyone. The Democrats’ health care legislation focuses on expanding health insurance coverage, which should encourage innovation—yet it does so by expanding price controls, government purchasing, and health insurance regulation, which reduce innovation. What would be the net effect? What are the alternatives?
The results of this research will be released at a forum on Friday. Rhode Islanders can watch it by visiting this page.