Thinktanks & Research

Bringing Market Discipline to Health Care is Necessary – AEI

By Joseph Antos, James C. Capretta ● AEI ● 09/06/2017


The provision of medical care is inefficient, which makes health insurance needlessly expensive. Market discipline can eliminate waste, but only if consumers have an incentive to get their health services from cost-effective systems that deliver higher-quality care at a lower price. Policymakers must change the tax treatment of job-based insurance, reform Medicare, and adjust health savings account rules to ensure consumers can reduce their costs by opting to get their care through efficient managed care arrangements.

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