Health economics classic.
Traditionally, the family (combined with religion) was the mechanism for insuring against the consequences of disease and disability and the locus of the production of care. With industrialization and urbanization, the provision of insurance and of care tended to move out of the family and into the market, the observed increase in medical's care share of total economic activity is thus nothing more than an accounting illusion.
However, medical insurance didn't stay into the market, but increasingly became a function of the state. Every time the state assumed an additional function, the need for close family ties became weaker. It has often been alleged that intra-family dependency relationships are inhibiting and destructive to individual fulfillment. However, whether a dependency relationship with the state will prove less burdensome remains to be seen. Plus there is also the question whether the efficient provision of impersonal caring is feasible.
Another essential question is how the cost of health care should be shared? Two conflicting answers, casualty insurance vs social insurance model. Which one is more conductive to an efficient health care system is primarily an empirical question (interwoven with value judgements) that cannot be answered a priori. Which approach is more just is primarily a value question (individual vs collective responsibility). Hopefully the genetics revolution may further shift(consolidate) public sentiment toward the social insurance model.
Technological chance in medicine must be tamed but not destroyed, as it is the most important force behind the escalation of health care expenditures. Needed is a new technology assessment, mapping not only efficacy and safety, but also encompassing considerations of quality of life, patient preferences, and especially the evaluation of costs and benefits.
Finally, we must learn to cope with an aging society. The amount of health care that the elderly can consume is limited only by the imagination and ingenuity of scientist, physicians, et al Ultimately we must teach people how to die (major challenge as most people haven't even mastered the art of living) Otherwise things will get messy, with mounting financial and ethical pressures, whereby the right to death with dignity will be transformed into an expectation and eventually an obligation.