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But your analysis misses a central flaw in our system: institutionalized cost shifting.
Economists believe that what is denounced as "cost shifting" in health care is mainly just good old-fashioned, profit-maximizing price discrimination based on differential market power, which is not to be confused with cost shifting.
"Doctors and hospitals are getting higher reimbursements, and consumers are not inclined to play patsy for cost shifting".
There would be no need for cost shifting or the ordering of unnecessary tests, and less incentive for fraud.
Is the suggested rider necessary, or is it simply a matter of cost shifting by the co-op?
For example, I basically don't think you can stop cost shifting — from the people who pay to those who don't — unless you cover everybody.
Similar(31)
"It looks a lot more like cost-shifting".
Cost-shifting should not be confused with cost containment.
Health care economists call this tactic cost-shifting.
The cost-shifting that goes on is enormous".
But that kind of cost-shifting or bargaining-power competition doesn't create health care value.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com