market-based healthcare

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In the course of explaining why market-based healthcare reform can't succeed, Smirking Chimp examines the proposition that "No 'free market' solution to providing health care can work without price controls:" He notes that "In other countries, 'market-based' solutions work because of decidedly non market-based practices, like government-mandated price-setting:"

Any solution that places pricing power in the hands of monopolies and near-monopolies will always fail to deliver an affordable product, whether that market is cable TV or health insurance. Monopolies inevitably lead to high prices.

He quotes from this Jacobin article by Benjamin Day (executive director of single-payer advocacy group Healthcare-NOW), which points out that Aetna, one of the largest insurers, "is pulling out of state health exchanges in 2017. The company's action marks the failure of every market-based reform included in the Affordable Care Act (ACA):"

The last gasp of the ACA's market-based reforms reveals an uncomfortable truth about our health-care system: we cannot afford to expand or even maintain our current access to care without cost controls, and health-care costs cannot be controlled with competition or markets.

The only cost control that works without undermining access to care is also the kind that Republican and Democratic leadership have foresworn this election: public budgeting and rate-setting through a single-payer system, or regulations that force nonprofit insurers to act like a single-payer.

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This page contains a single entry by cognitivedissident published on November 2, 2016 8:51 AM.

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