Crisis of the Overinsured: They Pay Up to Twice as Much for Hospital Services

In Michael E. Porter & Elizabeth Olmstead Teisberg’s Redefining Health Care, they note that major health plans succeed by exploiting a competely artificial economy of scale. Because of the tax-code, American workers are compelled to accept health “benefits” from their employers instead of taking their health-care dollars to buy health insurance that serves their families’ needs. (I’m using more libertarian language than Porter & Teisberg do.)

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