The original article is arguing that there should be prices in health care. The vast majority times is a lot closer to lasik than it is to heart-attack.
Even you would agree there are times were prices could work in health care. It is a non sequitur to respond a call for prices with the most extreme example and say you can't use prices for all of health care because of the extreme case. For the extreme case, we can have catastrophic insurance or government payment. However, it doesn't make sense to make all cases work like the catastrophic case.
I am acknowledging that there are times that the healthcare is different than other goods. However, the counter arguments seems to be that the acknowledge catastrophic situation is all that happens or matters? Everything but the most extreme cases is closer to the market for food or rent. It is extremely important that you receive it but there can be competition for which one you pick. Also, similar to the market for your labor. It is extremely important that you stay employed but still not life and death for many people.
There are benefits for real prices for the normal cases even if the extreme cases don't pay. Prices are determined by the marginal buyer. Consider a procedure that is life and death for 50% consumers. If several hospitals are competing for the other 50% that can shop around, that will drive down the price for everyone.
For routine care, people with insurance have a copayment that's fixed and printed on their insurance card. They care about and can easily find that price, and it's the price they pay, so why should they care what's going on behind the scenes between the doctor and their insurance company?
Except this disproves the "just show the price" argument. People know what the price is they'll pay for routine care, because it's printed on the card.
The one that's hard to figure out is what you'll pay for inpatient or otherwise complex/non-routine care, which is often where "shop around for a good price" isn't possible anyway. If you get hospitalized for a heart attack, you can't find out the price in advance, but you also don't have time to anyway.
All my previous comments explain that the heart attack example does meant much for how we should handle routine care.
A low flat rate for that is the same for an ear infection and 12k MRI leads to misuse. Price is a signal to suppliers and consumers. High prices causes consumers to look for alternatives. It also drivers more suppliers to the market. Flat copay does none of this
Even you would agree there are times were prices could work in health care. It is a non sequitur to respond a call for prices with the most extreme example and say you can't use prices for all of health care because of the extreme case. For the extreme case, we can have catastrophic insurance or government payment. However, it doesn't make sense to make all cases work like the catastrophic case.
I am acknowledging that there are times that the healthcare is different than other goods. However, the counter arguments seems to be that the acknowledge catastrophic situation is all that happens or matters? Everything but the most extreme cases is closer to the market for food or rent. It is extremely important that you receive it but there can be competition for which one you pick. Also, similar to the market for your labor. It is extremely important that you stay employed but still not life and death for many people.
There are benefits for real prices for the normal cases even if the extreme cases don't pay. Prices are determined by the marginal buyer. Consider a procedure that is life and death for 50% consumers. If several hospitals are competing for the other 50% that can shop around, that will drive down the price for everyone.