There are several complex factors but cost disease isn’t one of them. The biggest issue is fixed supply. The number of doctors are artificially fixed via residency funding, hospitals have merged and become monopolistic.
One reason I don't think Baumol's cost disease explains skyrocketing US healthcare costs is that plastic surgery isn't behaving the same way. The avg breast augmentation in 1999 was $3.1k — $3.5-3.9k in 2009, $3.5-4k in 2018. Adjust for inflation & the price is actually droppinghttps://twitter.com/ArtirKel/status/1198664967073026049 …
-
-
-
This correlates with wealth bc demand for healthcare is inelastic. People will spend an arbitrarily high amount on it if they have to. But the causation is backwards. Costs aren’t rising because people are spending more. Supply is fixed and demand isn’t.
- 10 more replies
New conversation -
-
-
Could also look at dentistry. My personal impression is that the dental market is much healthier than the rest of medicine in terms of prices & insurance. Paying out-of-pocket is not crazy, and you can actually find out what the price will be without going to a special department
- 3 more replies
New conversation -
-
-
I've often wondered if the entire US medical industry could be fixed by a single federal law making it illegal to charge for health care _after_ it has been provided. It is one of the only industries here where you don't know how much you owe until after you owe it :(
-
With fewer health care regulations, the market might converge to transparent pricing by itself. Some hospitals are doing this already.https://www.econtalk.org/keith-smith-on-free-market-health-care/ …
End of conversation
New conversation -
-
-
Cosmetic plastic surgery isn’t covered by any kind of health insurance, so the free market dictates prices.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
LASIK is an even stronger example. But it’s really most medical procedures not covered by insurance.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
same with LASIK
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
It's just a free market that posts real prices vs one that's opaque and paid for indirectly.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.