Healthcare pricing mandates are no substitute for shopping around

It’s easy to pay without thinking twice. On trips to the supermarket, consumers can see the price of any product and decide whether or not to buy accordingly, forcing sellers to keep costs as low as possible. A consumer who wouldn’t think much of a $2 price tag for a dozen eggs wouldn’t buy the same product for $20.

But if that same customer had someone else’s credit card, and no credit limit, then what does it matter if eggs are $2 or $20 a dozen? Sadly, that’s how markets work right now in the medical sector, where the government and third-party insurers are the primary payers and individuals have no incentive to shop around.