You Cannot Control Health Care Costs By Pushing Down Prices

You Cannot Control Health Care Costs By Pushing Down Prices

One of the very first things all students learn in their first economics course is the meaning of the word “cost.” They come to economics thinking that the cost of something is the priceyou must pay. Sometimes the two are equal. Often, they are not. In a field such as health care, cost and price are almost never the same. They are usually not even connected. It follows logically that if you try to control one of these variables by controlling the other, you will fail. And fail miserably. The social cost of…

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