Employer Provided Healthcare IS a problem

I’ve said before that I do believe there is a problem with the Healthcare system-namely that, by having it as an insurance based system-especially employer provided insurance-disconnects consumers from the price system. Without the information conmmunicated by prices, consumers don’t behave in their normal way-rather than seek out the affordable Healthcare, they diliberately seek the most expensive care-the highest quality-because they don’t even see what the costs are. Without price competition, there is no effort to reduce prices to attract consumers-only to spare no expense. Well, frivilous law suits also contribute to rising costs, as does Medicare, which creates an even greater rift between the consumer and the price system. Well, it turns out that (H/T Pat) Charles Krauthammer has a plan which would eliminate the disconnecting effect of employer based Healthcare.

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