In: Economics
Case study
1. why are private so high in the united states?
2. how are commercial insurance prices set for hospital services?
3. How are Medicare prices set for physician’s services?
4. How are Medicare prices set for hospital services?
5. should governments be involved in private price negotiations?
Medical Care in US
The US medical care system being fully privatized, has many
drawbacks of the price he sector charges and the ability of the
system to satisfy the populations. Rather than having a chain of
public health care facilities, US own a health care where someone
has to pay for the service someone enjoys. The free market
situation pulls up the price for every service due to various
reasons. The idea to privatize the sector was after the decision of
the government to follow a capitalize culture in the sector by
reducing the burden from the part of the government to the
system.
Being fully privatized, the government no longer could help in the
process of decision making especially to price the service made.
Having an inelastic constant demand in the sector, the firms always
will be free enough to charge the price they want with the quality
they provide.
The health care system in the US has complete autonomy on its
working. The technological up gradation and the competition may
force them hire better physicians for high remuneration. That may
probably leads to charge high for their service since the sector
doesn’t have the control from government.
Rather from the service of public health care system, private firms
will always try to earn profit which probably leads to charge high
price for every services they provide.
A complete autonomy could always charge high prices for the
services and goods by a firm or a market. Even a private health
care system could be charged optimally under the rules and
regulations of the government. In better words, government
regulatory could help in deciding and fixing price optimally which
is bearable to the public, which the US system of medical-care
lacks.