With the possible exception of the use of weight loss drugs, I’m not aware of any evidence showing that Americans are much more enthusiastic consumers of drugs and medical services than Europeans. In addition, many of the issues with the workings of the market I have described in previous posts are inherent in all systems. So why is America such an outlier as to the cost of medical treatment?
The GOP would have you believe the problem is bureaucracy and middlemen; what we really need to do, they say, is to return to a less regulated market and rely on the good sense and bargaining power of consumers. The market in medicine, however, is characterized by monopolies and a complete disparity of knowledge and bargaining power between producers and consumers; the GOP approach will consequently force less affluent patients to do without essential services. The real difference between Americans and Europeans is the willingness of the latter to use their regulatory power against the providers to keep costs down. In America, that runs into the opposition of extremely influential vested interests. Nothing will really change in this country until a stronger effort is made to overcome that opposition.