Question

Are market forces strong enough to deliver efficient healthcare? Please explain your answer.

Answer 1

In my opinion the market forces are not strong enough in United States to deliver efficient healthcare. The "market forces" to which economists describe holding ability to motivate improvement in efficiency and quality are largely nonexistent in the health care of U.S.. A technically efficient health care system can provide care that improves the status of health in a manner that minimizes the use of resources of society. Unnecessary care and inefficient modes of delivery would be either is eliminated or minimized, and health care cost growth would be commensurate with enhanced quality and effectiveness of care. But continuous increases in costs and an increase in the numbers of uninsured people will likely make a universal coverage model based on Medicare a politically popular choice however such a model would not provide efficient health care systems as it lacks sufficient incentives for consumers to opt and choose for less costly options. Moreover asymmetric information, adverse selection, moral hazard, and providers’ market power are hindrance to deliver efficient healthcare