Since consumers do not have to choose whether to use their own money for health care or for something else, the role of price as an allocation mechanism does not work in health care.

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Health care expenses are usually paid for by insurance, government programs, or employers, which means that consumers do not directly pay the full cost of their health care. As a result, the typical market forces that rely on price as an allocation mechanism, such as supply and demand, do not function the same way in health care.

Since Consumers Do Not Have to Choose Whether to Use