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State Policy Guide: Using Research in Public Health Policymaking

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A third has to do with the asym- metry in information between provider and pa- tient concerning the outcomes of intervention; providers advise patients on choice of treatment, and when the providers' income is linked to this advice, excessive treatment can result. As a conse- quence of these last two considerations, in unregu- lated private markets costs escalate without appre- ciable health gains to the patient. Governments have an important role to play in regulating pri- vately provided health insurance, or in mandating alternatives such as social insurance, in order to ensure widespread coverage and hold down costs. If governments do intervene, they must do so intelligently,.

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