We pay more for health care because we have more to spend.
The excellent Random Critical Analysis has a long blog post, really a short book, on why the conventional wisdom about health care, especially in the United States, is wrong . It’s a tour-de-force. Difficult to summarize but, as I see it, the key points are the following. (I also drawn on It’s still not the health care prices .) 1. Health care spending is well predicted, indeed caused, by income.