Obstacles to meeting challenges: market imperfections

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Obstacles to meeting challenges: market imperfections

  • Market-related issues:

    • The monopoly power of providers or health plans strongly influences prices in individual markets.
    • The pricing of services in public programs can inflate or otherwise distort market prices.
    • Tax incentives can serve to mask the cost of health care and impair achievement of desired cost-containment outcomes.
    • Administrative burdens reduce market efficiency and value to consumers.