Daily News Updates - Health Insurance News

What’s all this fighting about?, Pt.12 – Alas, the free-market forces will resolve.

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A very key point is now raised by Sally concerning market forces. Many people think that the capitalistic ‘market’ is some magic ‘cloud’ of mystery as many people in the IT industry refer to the Internet. May it well be in some ways, but some major properties of the free-market are well-understood and predictable. One of those is that, suppliers will always demand the most extreme price that the market will bear (pay for). It has very little to do with how much the product cost to produce or how much practical value it offers. So we must expect both health insurance and medical costs to always settle at the highest price where the optimum number of buyers will still buy. Ms. Pipes seems to promote the fact that "doctors and other health care providers would be paid below-market rates for their services.” ‘Market price’ is a funny term. Unlike some ‘fixed rule’, it’s always changing according to what people will pay. Those health insurance/care providers who charge the most in the marketplace may well be 'unenthusiastic’ about this and some will choose to opt-out of the system. By doing so, they may break themselves against the unstoppable forces of the ‘market, itself’. That is, unless our nation continues in the path it has taken for the past eight years, where spiraling health insurance/care medical ‘charges’ are increasing at a rate of ten times the rate of employee pay raises.

Should we allow the few who are responsible for this eminent health insurance/care system ‘meltdown’ to see it through? ‘At least the poisoned food is something to eat. I’m hungry’ kind if thinking? Eventually the ‘free-market forces’ will resolve this. Meantime, financial experts will explain to those health insurance/care providers watching their clients shop next door that this is not in their best interest. Those who don’t, may want to take a lesson from the ‘Darwin Gene-Pool’ theory.

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