The health care “free market”
Many American conservatives argue that we need to step back and allow the "free market" continue to offer the most efficient health care system in the world. The facts on the ground starkly conflict with this way of thinking. The International Federation of Health Plans recently released its 2010 Comparative Price Report detailing medical costs per unit. The study starkly illustrates that health care costs are much higher in some countries than others. The average U.S. prices for procedures are the highest of those in the 12 countries surveyed for nearly all of the 14 common services and procedures.
For example, total hospital and physician costs for delivering a baby are $2,147 in Germany, $2,667 in Canada, and an average of $8,435 in the United States. The survey shows that the cost for a hospital stay is $1,679 in Spain, $7,707 in Canada, but these costs can range from an average of $14,427 to $45,902 in the United States. The survey also found that the cost of a widely prescribed drug like Nexium can range from $30 in the United Kingdom to $186, the average cost in the United States. In addition to providing comparative cost data across the countries, the survey provides information about the wide range of costs being charged in the United States for common services, procedures and drugs. One example from the survey is hip replacement surgery which cost $12,737 in the Netherlands, but ranged from a low of $21,247 to a high of $75,369 in the United States. Five percent of U.S. prices are higher than $75,369. The differential between unit prices was greatest for surgery, according to the survey data. One of the highest differentials was for cataract surgery hospital and physician costs. The range for cataract surgery ran from $1,667 in Spain to an average of $14,764 in the United States.