NCPA - National Center for Policy Analysis


November 15, 2005

Market competition can improve health care quality, reduce costs and give patients, physicians and other medical service providers greater control over care, says Michael Cannon and Michael Tanner (Cato Institute). In their new book, "Healthy Competition: What's Holding Back Health Care and How to Free It," the authors propose several ways to free up market forces in health care.

They recommend:

  • Expanding health savings accounts to allow workers to control their health care dollars and decisions.
  • Reforming Medicaid along the lines of the successful 1996 welfare reform law.
  • Deregulating health insurance by allowing people to purchase coverage from any state.
  • Creating a competitive certification process for new medical technologies (drugs and medical devices).
  • Eliminating waiting lines for transplantable organs by allowing payments to organ providers.
  • Allowing individual patients to choose the level of malpractice protection they desire.

These proposals will further tap the power of markets to make health care more valuable and more affordable, say Cannon and Tanner.

Source: Steve Stanek, "Market Competition Can Improve U.S. Health Care, Authors Say," Health Care News, November 2005; based upon: Michael F. Cannon and Michael D. Tanner, "Healthy Competition: What's Holding Back Health Care and How to Free It," Cato Institute, 2005.

For Cannon and Tanner news release:


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