"Is the health care industry even operating in a free market?" "It is shielded by extensive levels of regulation that date back more than a century. These regulations have brought us the system that we have today. Looking back through the history of health care regulations reveals some common themes, all of which have caused prices to skyrocket. Artificial restrictions on the supply, causing an inevitable increase in prices. Entering health care field now requires an enormous investment of time and capital from the aspiring entrepreneur. These exorbitant costs also stem from a heavily regulated education market, but that is beyond the scope of this article. Artificial creation of demand, causing an equally inevitable increase in prices. Luxurious amounts of health care are utilized by people who would otherwise only be able to afford the minimum. Restrictions on the consumer’s ability to price shop. Insurance plans have been specifically designed to shield consumers from the actual costs of the services that they purchase. The customer has no incentive — or practical ability — to shop for the best price, leaving no motivation for the suppliers to lower their costs."
Posted on: Thu, 03 Oct 2013 22:14:24 +0000
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