HMO laws allowed for-profit healthcare insurance. Groups of doctors banded together and carved out exclusive contracts to sets of hospitals and providers.
Before this I recall seeing $7 taken out of my paycheck and there were no deductibles or copays. Meds were $5.
The govt also acts as a monopsony and forces lower prices. Same effect [0] different mechanism.
[0] actually a better effect - the govt actually does force lower prices, whereas competition is subject to all sorts of other effects where it doesn't actually function to lower prices.
Before 1985, there was no for-profit healthcare. Worked pretty good.
Before 1985 healthcare costs were very low, and population was way younger.
> Before 1985, there was no for-profit healthcare
Wait, what changed in 1985?
HMO laws allowed for-profit healthcare insurance. Groups of doctors banded together and carved out exclusive contracts to sets of hospitals and providers.
Before this I recall seeing $7 taken out of my paycheck and there were no deductibles or copays. Meds were $5.
The govt also acts as a monopsony and forces lower prices. Same effect [0] different mechanism.
[0] actually a better effect - the govt actually does force lower prices, whereas competition is subject to all sorts of other effects where it doesn't actually function to lower prices.