Price Discrimination in Health Care
Price Discrimination in Health Care
Table of Contents
Abstract 3
Price discrimination 4
The uninsured or self-pay patient 5
Price discrimination in health care 6
Cost shifting 8
Recommendations 9
Abstract The price of health care can vary dramatically depending on insurance coverage, and whether the care received was in network, out of network, government funded, or self-pay (Miller, 2012). Price discrimination is used by many industries such as airlines, hotels, and grocery stores with rewards for frequent users, or higher price for convenience or last minute reservations (Tiemstra, 2006). However, efficiency and fairness demand that new ways should be found to avoid price discrimination in health care in order to ensure patients equal access to care and economic justice. Uninsured or self-pay patients should not be charged rates significantly higher than those with Medicare, Medicaid, or insurance. Prices for health care should also be more transparent to allow patients to accurately shop for best prices and values in health care.
Imagine a system in which you go to the grocery store and are told that the price you must pay for your groceries is dependent on whether you have a job, and if you have a job the price is dependent on where you work. If you are work for a certain employer the price you will pay is near wholesale, for another retail, another twenty to thirty percent more, and if self-employed or unemployed you must pay a price three to four times higher for these groceries. Unfortunately this is the way our current health system works. Most hospitals charge those without insurance three to four times the price of that paid by those with insurance or government coverage such as Medicare or Medicaid. New ways should be found to avoid price discrimination in health care in order to ensure patients
Table of Contents
Abstract 3
Price discrimination 4
The uninsured or self-pay patient 5
Price discrimination in health care 6
Cost shifting 8
Recommendations 9
Abstract The price of health care can vary dramatically depending on insurance coverage, and whether the care received was in network, out of network, government funded, or self-pay (Miller, 2012). Price discrimination is used by many industries such as airlines, hotels, and grocery stores with rewards for frequent users, or higher price for convenience or last minute reservations (Tiemstra, 2006). However, efficiency and fairness demand that new ways should be found to avoid price discrimination in health care in order to ensure patients equal access to care and economic justice. Uninsured or self-pay patients should not be charged rates significantly higher than those with Medicare, Medicaid, or insurance. Prices for health care should also be more transparent to allow patients to accurately shop for best prices and values in health care.
Imagine a system in which you go to the grocery store and are told that the price you must pay for your groceries is dependent on whether you have a job, and if you have a job the price is dependent on where you work. If you are work for a certain employer the price you will pay is near wholesale, for another retail, another twenty to thirty percent more, and if self-employed or unemployed you must pay a price three to four times higher for these groceries. Unfortunately this is the way our current health system works. Most hospitals charge those without insurance three to four times the price of that paid by those with insurance or government coverage such as Medicare or Medicaid. New ways should be found to avoid price discrimination in health care in order to ensure patients
References: Anderson, G. F. (n.d.). From "soak the rich" to "soak the poor": Recent trends in hospital pricing. Health Affairs, 26(3), 780-789. Elegido, J. (2009). The ethics of price discrimination. In 2009 BEN-Africa Annual Conference (pp. 1-19). Accra, Ghana: GIMPA. Retrieved April 21, 2012, from http://www.benafrica.org/downloads/Elegido,%20Juan.pdf Geyman, M.D., J., Fegan M.D., C., & Skala, N. (2005, February 2). Bankruptcy Study Highlights Need For National Health Insurance. Http://www.pnhp.org/facts/bankruptcy_study.php. Retrieved April 21, 2012, from http://www.pnhp.org/news/2005/february/bankruptcy_study_hig.php Lilly, J. (2011, June 16). Medicare reform; It 's the price-fixing, stupid. Www.Americanthinker.com. Retrieved April 7, 2012, from www.americanthinker.com/articles Meyer, J. A., & Bruce, W. R. (1983). Cost shifting in health care: An economic analysis. Health Affairs, 2(2), 20-35. Miller, H. D. (2012, March 04). Price discrimination in health care. : Price Discrimination in Health Care. Retrieved May 04, 2012, from http://www.pittsburghfuture.blogspot.com/2012/03/price-discrimination-in-health-care.html Tiemstra, J. P. (2006, April). Price Discrimination and Fairness. Perspectives: Essay: Price Discrimination and Fair. Retrieved April 07, 2012, from http://www.rca.org/page.aspx?pid=2