National Health Care
Americans today can get an eye exam and glasses for less than $100 in most parts of the United States. Why is this significant? It's one of the few areas of US medical care that is not driven by Medicare Dollars. As a result, the free market system has established the (extremely low) price.
The US Medicare system has done for medical costs what the US Government regulation of the airline industry did to ticket prices in the 1970's. It was when deregulation of the airline industry occurred that airline ticket prices plummeted.
Cataract surgery, a major source of Medicare dollars, would likely decrease by more than 50% if Medicare recipients had the incentive to shop around for pricing.
In 2006, the US Government provided Medicare Coverage to more than 46 million Americans, spending more than $374 billion, or $8,000 per recipient. Why not split the savings with every receipient who spends less than $7,000 per year in Medicare expenses? Suddenly, these retirees would have the incentive to shop around for the best prices. And I'm sure hospitals would suddenly consider offering a universal package of health services to retirees for $6,000 per year - putting $1,000 cash back into the retirees pocket. It would be an economic stimulus to boot!
Wow this is good news
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Wow, I never considered the reason behind EXTREMELY low prices on prescription glasses and contact lenses. It makes sense now, and this prime example of the free market system functioning as is should can be used as an example in many other markets. Its too bad that the government so frequently interferes with what would otherwise be a tremendous system. Laizza Faire!
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