Medicare Sets 6 Billion Prices Across the Country; Is There Any Chance Those Are the Right Prices? NO
From John Goodman's blog post today "How Doctors Are Trapped":
"Medicare has a list of some 7,500 separate tasks it pays physicians to perform. For each task there is a price that varies according to location and other factors. Of the 800,000 practicing physicians in this country, not all are in Medicare and no doctor is going to perform every task on Medicare’s list.
MP: These problems sound a lot like the deficiencies of Soviet-style central planning in general when the government, rather than the market, sets prices, see Economic Calculation Problem.