Hayek’s most famous insight, about the indispensible informational function of the price mechanism, in his most famous paper, “The Use of Knowledge in Society“, comes in the course of an argument to the effect that central economic planning boards are bound to fail. On it’s face, it’s hard to agree that the Affordable Care Act does much to incorporate the fundamental Hayekian lesson when one of its key provisions is the establishment of the Independent Payment Advisory Board, a sort of central price-setting committee thought by its advocates necessary to contain the runaway cost of the American health-care system.
Actuarially-sound insurance policies are by and large illegal in America. That is to say, the price of a health plan is not allowed to communicate information to consumers about their individual risk. The ACA has doubled-down on the prohibition of risk-sensitive insurance by reducing in various ways the discretion of health-plan providers to take into account pre-existing conditions or changes in health.
The whole point of MediBid is to provide the transparency to allow a properly functioning market.