Recently the Concordia Center for Public Policy hosted a program on managing pension costs. Rapidly escalating pension expenses have dominated the news and forced the issue to the top of every local government agenda. The rapid increase in pension costs is due to the poor investment performance of pension funds such as CalPERS, changing assumptions [...]

Here is an opinion by Joseph Rago from the WSJ. He does a good job describing the current payment system. To appreciate what’s wrong with the current system, imagine four patients identical in every way except for their insurance coverage. They report to the same doctor for a routine procedure, say, a colonoscopy. The first [...]