What economic lessons about health care can we learn from the market for cosmetic procedures? – AEI | Carpe Diem Blog » AEIdeas

1. For the top ten most popular cosmetic procedures last year, none of them has increased in price since 1998 more than the 45.8% increase in consumer price inflation (the price for the hyaluronic acid procedure wasn’t available for 1998), meaning the real price of all of those procedures have fallen over the last 16 years.

2. For three of the top five favorite non-surgical procedures in 2014 (botox, laser hair removal and chemical peel), the nominal prices have actually fallen since 1998 by large double-digit percentage declines of -23.6%, -31.2% and -30.1%. That is, those prices have fallen in price since 1998, even before making any adjustments for inflation.

3. Most importantly, none of the ten cosmetic procedures in the table above have increased in price by anywhere close to the 88.5% increase in medical care services since 1998. The 33.7% average price increase since 1998 for last year’s top five most popular surgical procedures, isn’t even close to half of the 88.5% increase in the cost of medical care services over the last 16 years.

via What economic lessons about health care can we learn from the market for cosmetic procedures? – AEI | Carpe Diem Blog » AEIdeas.

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One Response to What economic lessons about health care can we learn from the market for cosmetic procedures? – AEI | Carpe Diem Blog » AEIdeas

  1. Bob Hertz says:

    Cosmetic surgery does show that many outpatient treatments and day surgeries are wildly overpriced.
    However this is the fault of hospitals and timid insurance companies.
    It is not the result of coverage! I can find you ten countries where most procedures are fully insured and yet prices have not gone up at all. These are countries with national fee schedules, plus legislators who are not supine before health care giants.

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