What are economic health markets?

Answer 1

In economics, markets are models of everything that is bought or sold, or more generally, everything that does not have unlimited supply and must be rationed or distributed in some way. Health markets are about health care products and services and the people who provide them and the people who buy them. The models assume that providers and buyers are all-knowing and all-rational, and able to make decisions about providing and buying completely freely. Other models add the complications that come from non-rationality, limited knowlege, government restrictions, delays, and what have you. Price theory says that when people are free to choose what they provide and what they buy, that the prices will automatically adjust to distribute the products and services to the people who need them the most. Examples are immense and show how this kind of freedom solves problems faster in many cases than government regulation (which often makes it worse). One company talking a lot about health markets is a company called "Health Markets". The CEO tesified to the US Congress in 2007 that the market is insane compared with other markets such as cars. For example, you do not sign a contract to buy a car, drive it home, and then find out how much you have to pay when you get the bill in the mail. Yet, this is exactly what many medical providers expect, today, and government regulations make it easier for them to do that to people, and make information opaque and difficult to get. Health Markets intends to provide contracted prices for 20K procedures for 450K doctors and 150K facilities, along with quantitative and qualitative quality information (such as education and certifications the doctor has, how many of the procedure has been done, and how many were succesful). Finally, a health market could be freer for providers and buyers, with more information. Transparency is a key word. An economist could provide answers that clear this idea up considerably.