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Not only is there cost competition, but the real cost of a lot of services have actually gone down over the past fifteen years despite a tremendous increase in demand and enormous technological change. For example, the cost of conventional LASIK vision correction surgery has dropped radically, even as the procedure has become more technically superior (Herrick and Goodman, 2007).
Many experts have suggested that the solution to the health care system's troubles is to have a more market-based approach. Consumer-directed health plans are at the heart of this idea. If people are made to spend more of their own money, they'll be more practical users of care and look for better value at lower prices. This is how other industries work, and people don't complain much about them. It has been asked why health care should be any different. People think that the government should get out of the way. People should be able to shop for the best deal on the free market. and, furthermore, first-dollar, third-party payment should be reduced by encouraging high-deductible health plans (Frakt, 2010).
Health care has always been different than other markets, in large part because of the payment system. Between the doctor, third party providers, insurers and the patients,...
If customers and insurers can get complete information about what prices are charged to others, it is thought that this could be the first step toward health care better resembling a standard market (How is health care different than other markets, 2007).
References
Frakt, Austin. (2010). Health care is different (from other industries). Retrieved February 20,
2011, from Web site: http://theincidentaleconomist.com/wordpress/health-care-is-different-from-other-industries/
Herrick, Devon M. And Goodman, John C. (2007). The Market for Medical Care: Why You
Don't Know the Price; Why You Don't Know about Quality; and What Can Be Done
about it. Retrieved February 20, 2011, from Web site: http://www.ncpa.org/pub/st296
How is health care different than other markets? (2007). Retrieved February 20, 2011, from Web site: http://pajamaguys.blogspot.com/2007/03/how-is-health-care-different-than-other.html
site: http://www.alternative-medicine.net/healthcare/market.perspectives.html
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