Reasons why the "invisible hand" doesn't work in the health care sector

[CultureCitizen]

The purpose of this thread is to document reasons why the invisible hand seems to be invisible in the health care sector.

Reason #1 : Health care is extremely inelastic :
The price of a certain procedure can go up and , if it will cure you , you will pay the price. This is specially true in life or death situations.

 

[Freemason9]

It is erroneous to apply economic theories and models as law. Economic models can address particular industries in particular societies at certain moments in time, but that's as far as it goes.

The "invisible hand" is entirely non-existent in some circumstances. Public utilities and infrastructure are huge examples.

 

[EdwardBaiamonte]

The purpose of this thread is to document reasons why the invisible hand seems to be invisible in the health care sector.

Reason #1 : Health care is extremely inelastic :
The price of a certain procedure can go up and , if it will cure you , you will pay the price. This is specially true in life or death situations.

this liberal obviously lacks the IQ to be here. The main reason the invisible hand does not work in health care is becuase liberals made it illegal in 1946 through McCarran Ferguson.!!

 

[CultureCitizen]

this liberal obviously lacks the IQ to be here. The main reason the invisible hand does not work in health care is becuase liberals made it illegal in 1946 through McCarran Ferguson.!!

For the purposes of this post please try a global view. Almost any country is more efficient than the US in this economy sector and they have different systems;.

 

[EdwardBaiamonte]

this liberal obviously lacks the IQ to be here. The main reason the invisible hand does not work in health care is becuase liberals made it illegal in 1946 through McCarran Ferguson.!!

For the purposes of this post please try a global view. Almost any country is more efficient than the US in this economy sector and they have different systems;.

dear they have made the invisible hand illegal globally too. Do you have any idea what your point is??

 

[C_Clayton_Jones]

"Reasons why the "invisible hand" doesn't work in the health care sector"

And the 'invisible hand' is weak and frail in most other sectors.

 

[EdwardBaiamonte]

"Reasons why the "invisible hand" doesn't work in the health care sector"

And the 'invisible hand' is weak and frail in most other sectors.

exactly, China just switched to it and instantly eliminated 40% of world poverty. Thats weak and frail only to a lying idiot liberal.

 

[CultureCitizen]

dear they have made the invisible hand illegal globally too. Do you have any idea what your point is??

Ok, Baiamonte , here is an article and chart for you to ponder on :

How Good Is The Good News About Healthcare Inflation - Forbes

 

[EdwardBaiamonte]

dear they have made the invisible hand illegal globally too. Do you have any idea what your point is??

Ok, Baiamonte , here is an article and chart for you to ponder on :

How Good Is The Good News About Healthcare Inflation - Forbes

dear, if you say the invisible does not work please say why or admit as a typical liberal you lack the IQ to defend your own OP

 

[CultureCitizen]

dear, if you say the invisible does not work please say why or admit as a typical liberal you lack the IQ to defend your own OP

Reason #2 . Medical consolidation
Monopolizing medicine Why hospital consolidation may increase healthcare costs Medical Economics

 

[CultureCitizen]

Reason #3. Information asymetry

"The doctor knows more than the patient. As a result, doctors can recommend unnecessary care that enhances their incomes, even though it may be of no benefit to the patients. Doctors might also recommend one drug over another or one medical device over another because of their financial relations with the producers. Because of their limited knowledge, patients have no reliable way of evaluating the quality of the advice they are getting ― especially when they get different advice from different doctors. "

Asymmetric Information Problem Solved Health Policy Blog NCPA.org

 

[EdwardBaiamonte]

dear, if you say the invisible does not work please say why or admit as a typical liberal you lack the IQ to defend your own OP

Reason #2 . Medical consolidation
Monopolizing medicine Why hospital consolidation may increase healthcare costs Medical Economics

too stupid if liberal govt makes competition illegal of course there will be consolidation!

 

[EdwardBaiamonte]

Reason #3. Information asymetry

"The doctor knows more than the patient. As a result, doctors can recommend unnecessary care that enhances their incomes, even though it may be of no benefit to the patients. Doctors might also recommend one drug over another or one medical device over another because of their financial relations with the producers. Because of their limited knowledge, patients have no reliable way of evaluating the quality of the advice they are getting ― especially when they get different advice from different doctors. "

Asymmetric Information Problem Solved Health Policy Blog NCPA.org

too stupid in all markets the producer knows more than the customer. A sales person will always recommend unnecessary goods and services.

 

[CultureCitizen]

too stupid in all markets the producer knows more than the customer. A sales person will always recommend unnecessary goods and services.

So Baiamonte, Kenneth Arrow, a top of the line american economist and Nobel prize winner is "too stupid" ?
I would like to see your credentials.

 

[bripat9643]

The purpose of this thread is to document reasons why the invisible hand seems to be invisible in the health care sector.

Reason #1 : Health care is extremely inelastic :
The price of a certain procedure can go up and , if it will cure you , you will pay the price. This is specially true in life or death situations.

Here's the error in your reasoning. Unless you need the procedure immediately, you can still shop around. Furthermore, your insurance company can shop around, and you can shop around for insurance.

 

[bripat9643]

dear, if you say the invisible does not work please say why or admit as a typical liberal you lack the IQ to defend your own OP

Reason #2 . Medical consolidation
Monopolizing medicine Why hospital consolidation may increase healthcare costs Medical Economics

To build a new hospital in most cities you need something called a C.O.N., "Certificate of Need." This document is provided by a board that is populated by the management of other other hospitals in the area. The chance that they are going to give permission to their competition to supply more hospital beds is just about zero.

 

[Avorysuds]

I'm so fucking tired of stupid liberals posing as intellectuals.

The reason HC costs keep going up (you fucking moron) is because due to the success of now "dated" but now far more affordable HC people live longer while also treating their bodies like garbage cans.


You have to be so detached from reality to not get that most of our medicine, treatments and whatever pertaining to HC 20, 15, 10 and 5 years ago are far more affordable today.

Fact is other countries would still be in the stone age of medicine if it were not for what the US brought to the table. As we becoming more socialist in medicine we have slowly brought less to that table year after year. There was a time, years and years and years ago (pre Obamacare) where the US was inventing like 70-80% of all new medicines....


I just can't take logicless hate filled liberals whom place their faith in emotions over reality. The whole point of the invisible hand is that it dun give a fuck what you wan things to be.... You can do as Obama did and dump trillions every year in stimulus spending, the economy can slightly make a comeback, but the invisible hand still looks at all that malinvestment and debt no matter how much you try and pretend it does not matter.... And at some point it will all come crashing back down.

 

[CultureCitizen]

Here's the error in your reasoning. Unless you need the procedure immediately, you can still shop around. Furthermore, your insurance company can shop around, and you can shop around for insurance.

To be more precise :
1. Yes, if you are uninsured and aren't in an emergency situation, then you will probably go shopping. But as people age they need to invest more in healthcare and the likelyhood that they will have an emergency situation increases.

2. I don't know anyone who is insured and goes shopping, but that may be because I know few people who have had the need of a programmed operation. Most of them just go to a prestigious hospital.
3. It is actually hard to do medical shopping ( see reason #3 information asymetry).
4. I would have to add that if insurers did shopping the primes would rise at a lower or equal rate than health care inflation.
Yet looking at this chart it is clear that is not the case.

More Proof That Health Care Is A Mess Infographic Popular Science

 

[CultureCitizen]

I'm so fucking tired of stupid liberals posing as intellectuals.

The reason HC costs keep going up (you fucking moron) is because due to the success of now "dated" but now far more affordable HC people live longer while also treating their bodies like garbage cans.

1. Your language certainly lacks finesse.
2. If that was the case then the countries with the highest medical costs would be Japan, Singapore, Iceland, Italy , Sweeden and Australia. And please notice the per capita cost in the US more than doubles that of Japan.

List of countries by life expectancy - Wikipedia the free encyclopedia
List of countries by total health expenditure PPP per capita - Wikipedia the free encyclopedia

3 .You are just ranting , as you have provided no proof to your claims.

 

[Agit8r]

Perverse incentive to keep patients alive but sickly, because that is how one keeps "repeat customers"