The Health Care Non-Market

Sometimes, however, Americans use more care because they think it’s free, or almost free. And that’s one big reason why health care hasn’t become Wal-Mart-ized. When you buy that DVD player, you whip out your credit card and pay with your own money. That makes you want to comparison shop for the best deal. But when it comes to buying drugs, consumers have little incentive to shop around. If you have good insurance, you’re going to pay the same $10 or $15 whether you need the most expensive drugs or not. For example, there’s no real link between quality and price in large swaths of health care. There’s no mechanism to comparison-shop. Even if you wanted to find the best price, no one would tell you. And don’t forget the emotional X factor: Americans equate the best care with the most care, despite the absence of evidence that the two have much of a link.