Reducing Healthcare Costs Requires Good Market Design

Peter Cramton, University of Maryland - College Park
Brett Katzman, Kennesaw State University

Abstract

Healthcare costs are no doubt too high, and Congress has been pushing for 13 years to harness market forces in Medicare procurement. But despite all this time, we are on the precipice of adopting a very poor market design according to Peter Cramton of University of Maryland and Brett Katzman of Kennewaw State University.