Im often asked if the free market can work in health care. My quick answer is: thats the only thing that does work.
Show me a health care sector where there is no Medicare, no Blue Cross and no employer and I bet thats a market that works very well.
Lasik surgery is one example. Patients get a package price and they know what they are going to pay in advance. There are no surprise medical bills. As my colleague Devon Herrick has shown, there is price and quality competition hereunlike other health care markets.
Competition works. Over the past decade, the real price of Lasik surgery fell 25%, despite a huge increase in the number of procedures and all manner of technological changethe type of change we are told leads to cost increases everywhere else in medicine.
A similar story can be told about cosmetic surgeryanother sector where the third-party payers have no role to play.