Heritage Foundation Leadership for America

The success of laser eye surgery provides a prime example of how employing free market solutions can help curb skyrocketing health care expenditures, explains economist Alex Tabarrrok. The cost of the operation, which is  ?not covered by insurance, not covered by Medicaid or Medicare, and not heavily regulated,? has fallen by ?38 percent in nominal terms? since 1998.

Most importantly, ?Laser eye surgery has the highest patient satisfaction ratings of any surgery,? and the quality of the practice has improved even as prices have declined thanks to ?price advertising, competition and consumer driven purchases.?