More health care competition will lead to lower prices
Sally Pipes, Pacific Institute · Feb 21, 2020
Here’s a newsflash: when businesses don’t need to compete for customers, they tend to raise prices.
Yet the progressive remedy to perpetually escalating health care costs is not to increase competition—it’s to eliminate it completely and put the government in charge of health care, via Medicare for All.
There’s ample evidence that a lack of competition is what plagues our nation’s health care system. Over the past few decades, large health systems have acquired local standalone hospitals and physician practices—and used their market power to wallop insurers and consumers.
To fight back, we shouldn’t nationalize health insurance. We should foster more competition among health care providers.