Imperfect Market

In: Science

Submitted By jgonzalez81
Words 561
Pages 3
Joannie Laney 6/11/15

Healthcare in the U.S considered to be an “Imperfect Market”

Although the United States is one of the few place in the world where insured people are able to obtain continuous routine, and basic care, it’s governed by free market forces. Health care market in the U.S is very flawed due to its inability to measure quality, as well as inadequate social cost financing, not to mention all parties involved. The parties involved in the U.S. healthcare market are employers, providers, consumers, government, insurance companies, price competition, market share, managed care practices, and investment capital. The checks and balances in this healthcare free market is not equal, therefore the market is referred to as imperfect.
The free market concept is when a buyer and seller acts independently. The buyer should be able to choose their care based on price and quality, but unfortunately this is not the case. The prices are set by external agencies, instead of using the supply and demand model. Physicians, medical facility, are now driven to form alliances with private health plans, as well as public sector, in order to maintain an influx of patients, and remain gainfully employed. Another issue is that in certain areas a single medical system has controls, and leaves the consumer no other choice but to go use them. One thing that free markets is required to do is give patients information on services, and products. Consumers are to be educated in order to choose what best matters to them. In regards to consumers knowing pricing its difficult, there are hidden fee, item-based pricing, packaging prices, and capitation. These thing place further strain, and limits the patient’s decision making ability about the healthcare plan they will purchase. It goes back to what they need vs. what they can afford.
Each party involved has a…...

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