Erdos Had The Number First

As a liberal, I think I need to out myself on this topic: I believe in market
solutions.

I don’t really think the “Invisible Hand” is either invisable or a
hand, but I do find that competitive markets act, like my ecologic systems,
as a very efficient filter for good and bad ideas.

Part of the problem is that the phrase “Market Solutions” has become
equated with privitization and (more importantly) corporatitization. Neither
of those two things are a requirement for markets to work.

The other day (or was it last night), our government passed a bad bill
that was supposed to make getting prescription drugs easier to get
for old people. It’s really just a gravy train for big pharma.

More Insurance is not the way to solve the health insurance problem in
America. So, I’ve got a proposal: health care markets.

If we comoditize health care, at least drugs and basic services, we
can create a futures market where providers (doctors and hospitals)
can sell future services for a fixed price. This allows the health
care providers to work out what there costs can be in order to
maintain profitability. This would work with drugs too, health care
providers would buy and sell futures for services that they might
need.

This would encourage consolidation, which is bad, but it is no less
pressure than exists now.

Indemnity is the final issue that would be addressed by a Health Care
Exchange. Since there is no contract between provider and client,
there is not facility for which a health care provider can limit their
liability and no way for the client to gauge their tolerance for
liability. If services futures were traded, the liability limitations
could be priced into the contract. In this way providers could limit
their own liability and lower costs allowing purchasers to choose
their costs based on their tolerance for liability.

Controlling indemnification does not open the flood gates for abuse.
There are already laws covering the legalities of practice and the
limits of safety for nearly all aspects of health care. Market forces
and simple existing law enforcement, combined with Exchange rules
governing behavior would be sufficient to contain abuse. Current
commodity exchanges are very effective in limiting abuse, and these
tactics would translate well into the services future industry.