Why Does An MRI Cost More In The US Than In France?

This article provides some information about relative prices for healthcare products and services in the industrialized world.  Prices are much higher in the US.  If we paid the same prices as other countries, we would eliminate our budget deficit.  The article explains some of the reasons why prices are higher in the US.  One reason is that insurers have a weak bargaining position with suppliers.  Governments either help to set prices in most countries. They set prices in the UK and in Canada they have a national insurer (Medicare) that negotiates prices from a position of strength.

A conservative economist from George Mason University offers an opinion that shifts the focus from prices to waste.  He argues that there is a lot of waste in system and that we should eliminate the waste instead of meddling with prices.  He provides a good example of why it is so difficult to address the real problems in our healthcare system.  Conservatives believe that healthcare is no different from other things that consumer's purchase.  If we let the market determine prices, and the level of consumption, like it does for other commodities,  we would not have any problems.  Conservative economists at places like George Mason, and other conservative think tanks, provide the economic rationale for Republican positions on healthcare.  They tell the public that we need a market based solution and that waste in government provided programs is our biggest problem.