Which Way For Competition? None of the Above

Research Report

Which Way For Competition? None of the Above

January 30, 2006


Despite growing documentation that the conditions needed to support competition in health care do not exist, consumer-directed health care has been offered as the new market-based solution to cost inflation. Yet typical consumer-based insurance products undermine the very logic of expecting consumers to make good health care decisions by making preventive services--the category of services about which consumers are best able to make informed decisions using their own money--exempt from cost sharing. Consumer-directed care threatens important societal values--in particular, the goal of establishing relationships between patients and clinical professionals based on trust. (Health Affairs 24(6):1536-1542, November/December 2005)
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