In recent years their has been great debates about Healthcare and the Invisible Hand. The theory of the Invisible Hand was introduced by ecomonist Adam Smith in The Wealth of Nations. The theory states that when man intends only to increase his own gain he is led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.
In other words when everyone does what is in their best interest, society benefits as a whole. The question then arises can Healthcare be more reformed without government regulation? Health Insurance serves several purposes: it enables consumers to spread the exspense of health care and provides access to medical aid they otherwise may not be able to obtain. The government has always respected the states role in health care regulations. In 1944 congress passed McCarran-Ferguson Act, which basically states that the business of insurance shall be subject to laws of the several states.
Although since the early 1970s government intervention has slowly made its way back into health care regulation issues. The health care market like any other market relies on supply and demand. Some might say due to the high demand of health services a shortage for health care has occurred resulting in a increased cost of health care. Others might argue that without direct government intervention prices have sky rocketed making it almost unaffordable to the middle class society.
With the theory of the invisible hand hospitals and other health systems would do whats best for their organization to better reform the health care structure. This could mean remodeling facilities, more use of alternative medicines, upgrades in technology and so on. All of which can come at a higher price for the consumer. In Swizterland the idea of the invisible hand in health care does not exist. Swiss are required to purchase basic health insurance which covers a range of treatment in the Federal Act.
Structures such as that of swizterland suggest that government regulation is very much needed in concerns with health care. All Swiss pay the same premium with the basic plan regardless of age or health condition. The only down side to their infrastructure is that the only way to yield a profit in the health care system is to increase the prices of supplements. Although the idea of a free market in health care sounds feasible, government regulation is very much needed. I believe without out gov regulation the cost of health insure would climb real high real fast.
By implementing the theory of the invisible hand producers of health care have the upper hand. Health care is a service that will always be in demand no matter the cost. I can say with no hesitation that I against the idea of a free market. I will go on to say that if the government switched over to the health care structure of Swizterland their would be more insured Americans. The majority of the power should be removed from the health care providers and handed to the government.