Eyeball on the Free Market

The State would have individuals believe that they are the gatekeepers to a smoothly functioning economy.  That the State knows what is best, and can best provide individuals with cost effectiveness for goods and services via central planning.  An example that chops that idea right off at the knees.

"Laser eye surgery has the highest patient satisfaction ratings of any surgery, it has been performed more than 3 million times in the past decade, it is new, it is high-tech, it has gotten better over time and… laser eye surgery has fallen in price.  In 1998 the average price of laser eye surgery was about $2200 per eye.  Today the average price is $1350, that’s a decline of 38 percent in nominal terms and slightly more than that after taking into account inflation.

Why the price decline in this market and not others?  Could it have something to do with the fact that laser eye surgery is not covered by insurance, not covered by Medicaid or Medicare, and not heavily regulated?  Laser eye surgery is one of the few health procedures sold in a free market with price advertising, competition and consumer driven purchases.  I’m seeing things more clearly already."

Via Alex Tabborak at Marginal Revolution.

Posted by on 11/23 at 04:43 AM

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