Quote:
Originally posted by Mmmm, Burger (C.J.)
1) Buyers and sellers always have different levels of information, but that doesn't mean we should price-regulate in all circumstances. There is certainly an argument for it in some instances, e.g., emergency room care, and perhaps an argument for quality regulation (i.e., licensing requirements), but not wholesale. Even with a PPO plan, I shop around both for credentials and for price (i.e., are they in the plan). Why can't other consumers do that--it's 20% of the frickin' economy; people drive 5 miles to save a nickel a gallon.
|
The information imbalance seems particularly extreme here. I shop around for credentials and price with a PPO, too, but I was thinking about the problems with insurance plans that specify what sorts of treatments are covered. As it stands, it's next to useless for the ultimate purchaser -- the patient -- to try to consider this ex ante. And even when you look at credentials, the kind of information you get is pretty lousy.
Quote:
|
2) Insurance contracts and employer tax incentives create the problem, and are not themselves market failure, but regulatory failure. I agree, however that they contribute to the problem. Take away the tax incentives then.
|
The whole industry is the result of measures designed to solve one problem that create another. If you're just going to say, undo all of it, you'll have fun talking to that crowd of liberatarians over by the bar, but don't expect other people to come join the conversation.
