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bounty44 -> RE: ..."arch-conservatives rejected it" (3/25/2017 2:13:09 AM)
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ORIGINAL: tamaka
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ORIGINAL: bounty44
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ORIGINAL: tamaka
What prevents a free market for healthcare now?
at least 4 things that come to mind.
artificial limitations on the amount of doctors.
limitations on who can do what when it comes to practice (though this is changing somewhat in our times)
insurance companies. (let me know if you want some elaboration on that point)
increased government involvement/regulation that drives up provider costs.
Yes if you wouldn't mind elaborating on the insurance companies, i would appreciate it.
there are a few things tamaka, one is indeed a "meddling" in the free market and the others, while perhaps technically still "free market" nevertheless end up distorting it.
the first is, and I think this one's already been mentioned, state involvement/regulations on insurance companies. so insurance companies do not and indeed cannot offer only what consumers are interested in buying and so people have to buy things they don't want. the result of that is premiums go up.
another is, the presence of insurance companies (and government regulation) increases costs at the provider level. physicians typically have to hire people for whom a large part of their job responsibility is just that. that cost gets passed along to the consumer.
the last is, when a third party (or "everyone") is paying, it removes the intimate relationship between consumer and provider in terms of the price and worth of the product being given. because of insurance, providers can charge 150 dollars for an office visit in which you are only seen for 15 minutes. whereas, if you were paying that much money out of your own pocket, its likely at times you wouldn't find that 15 minute product worth it, or you would strongly consider when it was indeed worth it as opposed to going to the doctor willy nilly for every ache and pain simply because "insurance is paying for it." ultimately, when that happens enough, demand goes down and prices go down with it. further, doctors, from both fear of litigation and because someone else is paying, will frequently order tests and procedures that wouldn't be ordered if people had to consider the worth of such things themselves. its simply too easy to spend other people's money and the result is, the product becomes more expensive.
to go off in a different direction, I mentioned practice limitations and that a change is occurring in our times---the advent of physicians assistants and nurse practitioners are a great step in the right direction. not everyone going to the doctor actually needs to see a doctor.
but even given that, and though we need more of that, we do need more doctors. there is little to no competition for practices comparatively speaking. my area for instance has one nephrologist, one endocrinologist, one dermatologist, one neurologist, one ophthalmologist...you get the idea.
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