What happens when you shove insurance aside and the distortion that they introduce in prices is eliminated? About two years ago I had to buy a roof for my home. Long story short, the insurance company I was dealing with would not replace the hail-damaged roof on my home.

The quote that I got from another roofer was interesting because he said he’d really have to “sharpen his pencil” to give me the quote because he knew I was going to ask others. He knew there wasn’t a price distortion, if he was too high, he simply wouldn’t get the job.

I wound up with a very affordable roof. The quote was two to three times less than what I had received from others who thought I had insurance. I got a great roof for a great price.

This obviously has parallels in healthcare. I wondered what would happen if everybody rejected insurance who operated a facility like the Surgery Center of Oklahoma or any others who are members of the FMMA? What would happen to prices? It be the exactly the same thing as if all roofers rejected insurance. The prices would fall. What if homeowners just didn’t buy insurance that covered their roofs? Prices for roofing jobs would fall and my guess also, with the market more at work and without these insurance distortions, quality would soar. After all, that’s what happens when the market is allowed to work.

I paid a reasonable price for my roof, just like patients are paying reasonable prices for healthcare at medical facilities that are adopting the wisdom and the discipline of the free market.

You can meet many people who have adopted this wisdom for their facilities and for their medical practices at the Free Market Medical Association conference this month. Hope to see you there!