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Purpose

After discussing the high and rising health care costs in the USA, its disparities, and the suggested demand, supply, and managed competition‐side strategies to contain health care costs and their ethical implications, this paper seeks to explore whether or not these strategies will further aggravate the existing health care disparities.

Design/methodology/approach

This conceptual paper utilizes various appropriate exiting economic and ethical theories. The economic and ethical theories utilized are relevant to the problem of rising health care costs; to the proposed demand, supply, and managed competition‐side cost containment strategies; and to the existing health care disparities.

Findings

This paper demonstrates that the suggested cost containment strategies do in fact aggravate existing health care inequities and are not always ethical.

Originality/value

Given the present health care reform debate in the USA and various misconceptions about it, the author believes that the paper and its findings should in fact be viewed as a contribution.

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