Econoclasm Chapter Two: Medical Economics
You hear all the time politicians and pundits saying that we should let the Free Market ™ work in health care, that Free Market™ solutions are the best. But it should be
obvious that Medicine exists in a world even less like Economics 101 than most
industries. To begin with, while our basic needs for food, clothing and shelter
are predictable and roughly similar for everyone, our n eed for medical services
is largely unpredictable, and it varies radically from person to person and
time to time. Some people go for decades without really needing any at all,
although there are some preventive measures or screening tests that are
recommended even for people who think they’re per fectly healthy. Then suddenly,
by surprise, people can face medical costs they cannot possibly afford; and the
alternative might be horrible suffering, disability, or death.Another major
reason Medicine is not like Economics 101 is that Bob knows what kind of food
and other goods he likes, and he has some idea how to evaluate the products on
offer and compare the prices. In other words he can shop around and exercise
his power as a consumer. But for the most part, as consumers of medical services,
we can ’t do any of that -- the problem of information asymmetry is extreme.We might have a
symptom that bothers us and go to our physician to get it diagnosed, but we
have to rely on the physician to tell us what is happening and what to do about
it. We might not even have a symptom. We may go for a che...
Source: Stayin' Alive - Category: American Health Source Type: blogs
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