Roadblock to Progress :How Medicare Impedes Health Care Innovation

This paper highlights how government, especially Medicare, distorts the healthcare system, hindering innovation's ability to enhance value as in other markets. To address this, policymakers should focus on five principles: (1) Government struggles to define value accurately; (2) Consumers should have the power to prioritize their values; (3) Value incorporates both quality and cost considerations; (4) Medicare's coverage criteria must be transparent and consistent; and (5) Policy should not heighten innovation risks through increased uncertainty or regulatory hurdles. Encouraging a more competitive market, rather than relying solely on government oversight, can incentivize private sector innovators to tackle healthcare inefficiencies and reduce costs.