ABSTRACT
A large array of health care providers gives medical services—at low or no cost—to those without insurance. In the words of David R. Henderson, "people do consume more health care when they are spending other people's money". A sensible step toward the free-market approach is to reduce the governmental subsidies which increase people's demand for the "best" health-care service. A good place to begin is to eliminate the tax advantage now given to health care over other consumer expenditures. Employer-financed health insurance should be included in taxable employee compensation along with direct payments of wages and salaries. A standard medical card for each person with the vital personal and insurance information would avoid the repetitious collection of the same data by each health-care provider. On a national scale, an unprecedented wave of mergers and acquisitions is occurring among major health care providers.
