Health Affairs, 27, no. 6 (2008): 1522 doi: 10.1377/hlthaff.27.6.1522 © 2008 by Project HOPE	New Online   Senate Health Reform Bill   Rewarding Providers   Public Option Policy Brief   Health Reform & Abortion   Delivery System Reform

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Medical Devices

PROLOGUE

Medical Devices

Economist Uwe Reinhardt once likened the payment system for U.S. health care to a fictional employer-sponsored "clothes benefit program." Companies would reimburse workers for 80 percent of the "reasonable cost" of attire that was "necessary and appropriate" for the job. The catch: although employees could choose whatever they wanted from the racks of any department store, they’d have to wear a blindfold while selecting their attire. That way they’d have no idea what they were picking, no notion of whether the clothes were "necessary and appropriate," and not a clue as to what prices they and their employers would pay.

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