Deeper Dissection #5
What is Reasonable?
This week we finally meet CMS (originally the Health Care Financing Administration or HCFA). It was created when legislation was passed that created Medicare & Medicaid. These federal programs were designed to provide healthcare coverage for the elderly & the poor. But with the federal government operating a health plan, it faced the same economic dilemma that all non-private service providers face: how do you allocate resources efficiently when you can’t rely on price signals?
