Originally posted by KrazyHorse
I worry about the contracting system in health care, however. The contracting party (insurance, in most cases) would have to be very careful to avoid allowing the provider to skimp on necessary expenses. The problem here is that there's an agent between the consumer and the provider (the insurance company) who should not necessarily be trusted to put the consumer's interests ahead of their own. They might be incentivised to not ask too many questions about details in the contracts with providers if the right price is set.
I worry about the contracting system in health care, however. The contracting party (insurance, in most cases) would have to be very careful to avoid allowing the provider to skimp on necessary expenses. The problem here is that there's an agent between the consumer and the provider (the insurance company) who should not necessarily be trusted to put the consumer's interests ahead of their own. They might be incentivised to not ask too many questions about details in the contracts with providers if the right price is set.
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