Question

Do you think principles such as demand or competition should dictate pricing, or should insurance companies or government agencies set pricing for physicians?

Answer 1

Pricing of physicians or Medicare is a topic of debate .Firstly we should analyze both areas. If the prices are determined by the government or the insurance agencies then both governments and insurance companies will be avle to negotiate lower fees with the physician and the hospital who provides the medical care. This negotiation will be quite effective in reducing the prices like fees of the services provided by the physician. It is important to achieve commitments and control the pricing and quality hence governments are obligated
to take reasonable regulatory and other measures. It always try to achieve the progressive realization of the right to health care in limited resources. It is very important beacause the health care is not of any other kind of conventional market but it is characterized by such failures like information asymmetry, lack of information on prices , adverse selection, and
moral hazards.

In the other hand dictation of the prices of physicians by the demand and competition is also an important principle. Competition is certainly a good way to reduce the prices and improve or increase the quality of the health care services provided by the physician and the hospital. In tgis way both principles of demand and competition in healthcare is able to reduce the price and improve the quality but at the same time health is a very crucial issues so it must not be left hind the hands of market forces which may be some tume have negative externalities and exploitative element.

Both has their pros and cons so in my view health care prices or the pricing of physicians should not be determined by any one of them but by a system that includes the blend or the characteristics of both demand and competition as well as governments and insurance agencies.