Healthcare Prices Are Magic?

Another good point:

Competitive free market prices have the power to solve a host of problems. Rising prices encourage innovation. Higher energy prices are already sparking innovations that will save energy, protect the environment, and even bring gasoline prices back down as increasing efficiency moderates demand.

The same thing can happen with health care. Government controls more than half of all health care spending. This gives government the power to set prices. The insurance companies then follow the prices set by Medicare and Medicaid. The result is the same as it was for oil, airlines, shipping, and every other government attempt to set prices.

You have a choice. You can either trust politicians to correctly calculate the correct supply and price of health care, and suffer the inevitable negative consequences, or you can harness the magical power of competitive free market prices to increase supply and lower prices.

downsizedc.org/prices_are_magic

I wouldn’t say Prices are Magic myself. To most people they probably appear as magic, which is why they think gov’t control is the answer. But gov’t control is the problem (as the rest of the blog entry points out) free markets are the solution; and we desperately need a freer market in Health Care, NOT a single payer Hellarycare system.

postscript

I left the ad hominem in this one as a lesson to myself that even I can be a petty little bitch when I’m certain I know an answer. Do I know the answer? Do you?

Let’s start with a Socratic question: How much should an MRI cost? Come on now, do the math. If it’s a free market and everyone can shop around for services, this should be an easy question to answer. Stumped, aren’t you? That was the easy question. Here’s a harder question. You’ve been in a car accident. You are losing blood and they want to medivac you to a regional hospital for surgery. Do you let them or do you argue about the cost?

If you said you would argue, congratulations, you get the Darwin award for taking yourself out of the gene pool. Healthcare is not an easily priceable commodity and so there is no free market in healthcare because there is just people who need healthcare and providers who can offer it when needed. The price of those services should make sense based on the actual costs of the equipment, facilities and training required to perform those services, but good luck finding out any of those prices ahead of time when every minute counts.

This means middlemen are required to negotiate prices on your behalf in advance of your requiring those services. This is also a thing that has value in the marketplace. Want to try to figure out how much that is worth? I wish you luck.

Author: RAnthony

I'm a freethinking, unapologetic liberal. I'm a former CAD guru with an architectural fetish. I'm a happily married father. I'm also a disabled Meniere's sufferer.

Attacks on arguments offered are appreciated and awaited. Attacks on the author will be deleted.

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