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KentW said:My original post stated that healthcare does not operate in a free market economy. You said a lot of things in your reply, but nothing was really germain to what I originally wrote. The free market is defined as "business governed by the laws of supply and demand, not restrained by government interference, regulation or subsidy." With rare exceptions (e.g., a doctor who only accepts cash), medicine in the U.S. operates almost exclusively under the umbrella of regulation. The free market law of supply and demand is not a factor.
There is not a single business that is not regulated to one extent or another by the government. I was in the manufacturing sector for many years and we were beset by all kinds of OSHA and environmental regulations.
The medical industry is probably the most regulated of any but it's just a question of degree. If the criteria is that only unfettered capitalism results in free markets then I guess there is no such thing as free market.
As long as you are able to choose how you will work and what you will charge for your services, the market is free. The "freeness" of the market has nothing to do with whether your offered price is accepted. You can practice a cash only business. You can also require your patients to file their own insurance claims but nobody wants to do this because the consumer expects a low price and no responsibilty to pay for thier health care except that they pay part of their premium.
I repeat, if the government or an insurance company could set the price for your services and you had no choice but to accept this price, they would set the price at zero minimizing their cost in the process.
The price they have arrived it is high enough to entice doctors to accept it. Your confusion results from not correctly identifying the health care consumer. Since most Americans have either private or governement health insurance, the health care customer is the insurance company, not the patient, and it is this relationship that responds to market forces.
People do make money accepting medicare, medicaid, and private insurance. Like most industries the low bid price is offset by increased volume which is why family medicince doctors only spend a measley five or ten minutes with most patients.