Sunday, 18 October 2009

Funding health care

In his FT blog and column, The Undercover Economist, Tim Harford has set out a different funding model for health care.

His argument in A brilliant (and doomed) template for health care reform suggests that the one thing that the UK and USA health care systems have in common is that both fail to ask "can I get better value treatment elsewhere"?

The proponents of the free market tend to talk about rational economic models, efficiencies of pricing signals and why market failure happens.

What they don't stress, and Harford is very good at doing, is making the point that the market is a collaborative tool for people and only works when the market is free enough for everyone to negotiate through its system in order to send the right signal about what works, what they want and what level of price they are willing to pay.

While it may be a bitter pill for some to swallow, perhaps making the case that the market is a collectivist mechanism that empowers the people would appeal to those critics of the market who don't quite trust it but reject command economics.
Post a Comment