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Can deregulation and free markets lower the cost of health care in the US?

Free market forces have always been a factor in the cost of health care in the U.S. The insurance companies decide what they charge consumers and then the consumer must decide if they're willing to pay the insurance companies. In theory this would make the cost of health care less, not more. However the when the insurance companies come together and determine the "customary and usual" price they would be willing to pay the prices rise. They're in it for profit. They profit by paying out less and taking in more.

Insurance companies are using fear tactics to impose astronomically malpractice rates for doctors, who then pass those costs on to consumers. The insurance companies then raise the premiums of the consumer, using the excuse that health care costs are rising. They then cut benefits to save money and make a bigger profit, while finding reasons not to pay for services rendered which were previously covered. Again it's the consumer that pays the difference. They cycle goes on, year after year. When once the consumer was paying $100 a month for basic coverage they are now paying $300-400 a month for even less.

If there were more regulations and price caps on things like malpractice insurance and basic premiums, the cost of health care would go down because the doctors don't need to pass on the excessive cost of their own insurance to the little guy. And the little guy isn't paying have a month's wages for insurance that may or may not cover doctors' visits for his/her family.

As for regulations causing an increase in health costs, that's a myth perpetuated by those in the health care industry that would love to cut corners and risk lives for profit.
The only widely known regulations imposed by the government are requirements that medical professionals be trained and licensed and drugs and equipment meet safety criteria after rigorous testing.

It would be unwise to curtail any of these types of regulations because of the dangers imposed to patients. As has been seen in other areas of the free market, when companies are able to get away with bending the rules and cutting the corners they are more likely to do that- until the market becomes aware and puts a stop to it. This was the case with toys with lead paint. There were loop holes in the regulations and the companies exploited that in an attempt to make more profit. One child died as a result. Imagine the number of deaths that would occur if regulations were removed from the health care sector.

More regulation of the insurance companies and their unchecked price gouging is what's needed in this country to bring the costs of health care down. If doctors could spend more time worrying about patient care and less time worrying about paying astronomical malpractice insurance and fighting for every penny, the outlook for the patient wouldn't be so grim.

Learn more about this author, Lizzie Flynn.
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