How Price Controls Contribute to High Medicare Bills

From Peter Suderman at Reason:

The basic issue here is that when you cap prices on services, you end up creating a system in which providers have a huge incentives to bill for more services. As Brookings health policy scholar Dr. Darshak Sanghavi tells the Times, “The notion is you can make end runs around price controls by increasing the number of things you do and bill for.”

Indeed, pricing systems end up creating opportunities for consultants and middlemen to help doctors figure out how to maximize their billing

More: How Price Controls Contribute to High Medicare Bills.

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