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Originally Posted by VJW
That’s due to the increasingly privatization of the system. The more the system has been turned over to corporate HMOs, as Krugman stated, the more it became about trying not to pay for medical care to increase profits, instead of efficiently providing medical care.
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I don't really understand how that works I'm afraid.
Lets say you have 10 companies offering health insurance. Each of those 10 companies will look to differentiate in some way because they all want to make money. Some may trade on excellent service, some on excellent value, some on location etc. but as long as the customer has the opportunity to choose the one that is serving them best then it's hard to see how they can do badly out of this system because you have 10 organisations trying their best to get the customer to spend their money with them.
Where such a system fails is if the customer doesn't get any choice in the matter. Then the company doesn't have to differentiate their service to gain custom, they get the custom anyway and the customer loses out big time.
Is the latter scenario accurate for the US healthcare market?