A Little Light on Managed Care

An AP report that admits we do not have a free market healthcare system — Competition lacking among private health insurers. The article quotes a Republican governor as admitting that "a serious problem with the lack of competition among insurers" and a liberal economist suggesting that "there's no incentive for insurers or big hospital groups to negotiate with each other, because they can pass higher payments on through premiums."

Dr. Ron Paul explained how it works in a 2001 commencement address to medical school graduates — The State vs. Doctors:

Managed care is not market-driven; it’s government-mandated. It has driven charity out of the system. No more church-financed hospitals and free care for the indigent. Everyone is charged the maximum, and no test is left undone for fear attorneys will be ridiculing us in court alleging our negligence. And if it’s not the attorneys, it’s the HCFA [Health Care Finance Administration] agents threatening us with fines and prison if we misinterpret any of the 132,000 pages of regulations. This system artificially pushes costs up, bringing calls for price controls, which only mean rationing and shortages.