Health care cost escalation in the united states: Implications of market failure

Much of the rhetoric in the debate over health care reform suggests reconfiguring the health care system so that the free market forces can work efficiently. This paper will show that hopes for a free market solution to the maldistribution of health care are false. The free market system cannot work at the same level of efficiency for health care as it does in the distribution of other goods and services. Health care presents an anomaly to the free market system, making optimal and efficient distribution virtually impossible. That failure of the market system has led to a crisis of disparity in health care access and delivery in the United States.