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The Free Market CAN Control Health Care Cost and Quality

IF WE LET IT and didn’t interfere with mandates, laws and other restrictions that interfere with free market forces!

Editor’s note: Paul Krugman who rights this piece in the NYTimes frames the question incorrectly (which is why he wins the argument with himself) and doesn’t observe the facts that are apparent in other parts of the world. For example, he says, “…the care can be very expensive.” Has he observed other countries? Or does he ignore those countries for the sake of his argument? Two points, people go to Canada to purchase drugs. The same drugs that are made in the US and shipped there. People go to India, Singapore and get quality care at a tenth of the cost. These hospitals are accredited by the Joint Commission (the same organization that accredits US hospitals) and has US trained physicians. So here is Krugman’s article. Can you spot other inherent contradictions and stretching of the truth to make his argument?

——————

Judging both from comments on this blog and from some of my mail, a significant number of Americans believe that the answer to our health care problems — indeed, the only answer — is to rely on the free market. Quite a few seem to believe that this view reflects the lessons of economic theory.

Not so. One of the most influential economic papers of the postwar era was Kenneth Arrow’s Uncertainty and the welfare economics of health care, which demonstrated — decisively, I and many others believe — that health care can’t be marketed like bread or TVs. Let me offer my own version of Arrow’s argument.

There are two strongly distinctive aspects of health care. One is that you don’t know when or whether you’ll need care — but if you do, the care can be extremely expensive. The big bucks are in triple coronary bypass surgery, not routine visits to the doctor’s office; and very, very few people can afford to pay major medical costs out of pocket.

Read the rest of the article here:

http://krugman.blogs.nytimes.com/2009/07/25/why-markets-cant-cure-healthcare/

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July 26, 2009 - Posted by | Cost, healthcare | , ,

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