Question

A highly debated subject in policy recently has been how to handle medical pricing (or medical insurance coverage). What are various parts of the medical system and how price does discrimination occur? Explain what purpose it serves and what potential harm is done.

Answer 1

The various parts of a medical system are divided into three main categories:-

• Medical Consumers- People who needs treatment and medicines.
• Professionals - People who deliver the medical services like Doctors, Nurses etc.
• Practitioners - These are the medical service providers like Clinics, Nursing homes, Hospitals, Medical shops, Health insurance providers etc.

Price discrimination in the medical system occurs when the Doctors or Hospitals charge different prices from different consumers (Patients) for the same service they provide like surgery or any other treatment. There is different price for the same service at different Hospitals or by different doctors.

Price discrimination is profitable for the doctors, Hospitals, or medical shops because they earn more money by charging more to some patients than to others.So it serves the purpose of providing incentives to the medical service providers so that they can work hard. But it is of great loss to the consumers because they have to pay more Money for the same service which they might have received for less.

In recent times due to the outbreak of covid19 there is a problem that how to handle the medical pricing. So during this condition it is the duty of the government to bring different policies to regulate price and price discrimination and also to settle down the disputes of the medical insurance.