3 ms·

shouldnt medicine be priced "without" the assumption that everyone will have insurance? insurance is a benefit given by consumer to themselves by paying for it,

shouldnt medicine be priced "without" the assumption that everyone will have insurance? insurance is a benefit given by consumer to themselves by paying for it, not the other way around?

lotsofpulp 6y ago
Many medicines aren't commodities with lots of suppliers, so the seller has a lot of power in the pricing negotiations. Insurers aren't paying higher prices to "keep prices inflated", they're paying them because there is no other choice. Sellers might also want to sell to insurers and others with deep pockets at a higher price than to non-insured or buyers with less money. So they will negotiate one price with an insurer, and the insurer will try stipulate they can't offer anyone a lower price, but then the seller might be able to get around this via rebates or discounts for buyers that can't afford insurance, etc.
- 2Gkashmiri 6y ago
  my question is why is insurer there in this discussion? from my understanding, pricing should be negotiated between companies and buyers in the market. > they're paying them because there is no other choice. In a free market, alternatives come up because consumers dont want to pay for exorbitant prices, they just cant afford it.
  - lotsofpulp 6y ago
    Pricing can only be negotiated properly when a buyer and seller are sufficiently educated about the market and the products. Very few people are sufficiently knowledgeable about medicine and healthcare to be able to discern an appropriate price (much less determine if what they are buying is even necessary or not). Hence society relies on #1) trust by assuming healthcare providers are acting on good faith and #2) a knowledgeable actor providing a second opinion such as a government healthcare payer like the NHS in the UK or private insurance companies in the USA, who employ teams of doctors and pharmacists to review people’s cases and determine appropriate levels care. For example, if you have a plumbing problem, you can call 5 plumbers and get educated and make an informed decision. With a healthcare emergency, lack of time and lack of healthcare providers and other resources makes that an untenable solution.

shouldnt medicine be priced "without" the assumption that everyone will have insurance? insurance is a benefit given by consumer to themselves by paying for it, not the other way around?

lotsofpulp 6y ago

Many medicines aren't commodities with lots of suppliers, so the seller has a lot of power in the pricing negotiations. Insurers aren't paying higher prices to "keep prices inflated", they're paying them because there is no other choice. Sellers might also want to sell to insurers and others with deep pockets at a higher price than to non-insured or buyers with less money. So they will negotiate one price with an insurer, and the insurer will try stipulate they can't offer anyone a lower price, but then the seller might be able to get around this via rebates or discounts for buyers that can't afford insurance, etc.

2Gkashmiri 6y ago
my question is why is insurer there in this discussion? from my understanding, pricing should be negotiated between companies and buyers in the market. > they're paying them because there is no other choice. In a free market, alternatives come up because consumers dont want to pay for exorbitant prices, they just cant afford it.
- lotsofpulp 6y ago
  Pricing can only be negotiated properly when a buyer and seller are sufficiently educated about the market and the products. Very few people are sufficiently knowledgeable about medicine and healthcare to be able to discern an appropriate price (much less determine if what they are buying is even necessary or not). Hence society relies on #1) trust by assuming healthcare providers are acting on good faith and #2) a knowledgeable actor providing a second opinion such as a government healthcare payer like the NHS in the UK or private insurance companies in the USA, who employ teams of doctors and pharmacists to review people’s cases and determine appropriate levels care. For example, if you have a plumbing problem, you can call 5 plumbers and get educated and make an informed decision. With a healthcare emergency, lack of time and lack of healthcare providers and other resources makes that an untenable solution.