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Policy Proposals

What to do about health-care markets? Policies to make health-care markets work

March 10, 2020

The Problem

Health-care markets have become much more consolidated over time. That consolidation has generally resulted in higher prices without gains in quality or other improvements. There are many health-care markets where competition can be effective, but the right policies are needed to support that competition. In other markets, robust competition would be more difficult to achieve, necessitating a different policy approach.

The Proposal

Gaynor proposes three types of policy reforms that would increase competition in health care and improve market functioning.

  • Reduce or eliminate policies that encourage consolidation or that impede entry and competition.
  • Strengthen antitrust enforcement so that federal and state antitrust enforcement agencies can act effectively to prevent and remove harms to competition.
  • Create an agency responsible for monitoring and overseeing health-care markets, and give that agency the authority to flexibly intervene when markets are not working.


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