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NAACP: Pod People Diversity in/Action
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Charlie Gibson Has Never Heard of "Competition"

Charlie Gibson on ABC:

GIBSON: But, Jake, we talked to several health care experts today, and they all said if you take out the public option in terms of insurance, there's going to be no restraints on the cost of insurance. And one by one, it seems, the cost-saving measures are coming out of health care reform.

There are about 1,300 health insurance companies in the US. According to Charlie Gibson, trusted font of economic wisdom, unless the government used taxpayer funds to artificially offer a cheaper option, there would be "no restraints" on the cost of their products. (Apparently, we would always just buy the most expensive plan we (or our employers) could find, and they'd never try to undercut each other on price.)

So, um, why aren't phone calls, dental visits, or hamburgers also infinitely expensive? There's no government agency creating a "public option" for those products. Along the same line: health insurance has been available for almost a century (Blue Cross & Shield have been around since the early 1930s) — why did it only become expensive rather recently? Did health insurance companies only start wanting to make money during the 1990s?

It's hard to fathom the stupidity of those who currently "inform" the American public. And how telling is it that not one single "health insurance expert" ABC consulted with informed them of the effects of competition?

TAPPER: That's exactly right, and you saw over the weekend Secretary of Health and Human Services Kathleen Sebelius also said that it looked like the end of life care provisions would also be gone from the bill. And that's another area where they had hoped to achieve real cost savings.

You mean the "end of life care provisions" that the 'right wing' (allegedly) falsely claimed existed? And how was that going to provide "cost savings" again, Jake? Not rationing certainly.

I could go on, but it's as pointless as a box of used crayons. The level of stupidity, dissembling, and incoherence I'm seeing is mind-boggling. Almost everywhere I look, I see a surreal, twisted political landscape — much like a funhouse, only without the fun.

Speaking of fun, here's today's bonus media dishonesty (another riff on the "opposition to ObamaCare = racism" theme):

On Tuesday, MSNBC's Contessa Brewer fretted over health care reform protesters legally carrying guns: "A man at a pro-health care reform rally...wore a semiautomatic assault rifle on his shoulder and a pistol on his hip....there are questions about whether this has racial overtones....white people showing up with guns." Brewer failed to mention the man she described was black.

Gee, I just don't see how that would undermine her narrative.

Comments

You mean the "end of life care provisions" that the 'right wing' (allegedly) falsely claimed existed? And how was that going to provide "cost savings" again, Jake? Not rationing certainly.

Wasn't the Left's claim (And yes, there's danger in trying to summarize the voice of a crowd in one line, but I'm trying to take what I see as the most reasonable counter-argument) essentially that the "end of life care provisions" weren't "death panels" as Palin had asserted?

Admittedly, Johnny Isakson(R) has pushed back in terms of having the end of life counseling sessions that he proposed in the wake of the Terri Schavio case equated with what's in the House bill. The house bill devotes 10 pages to the topic and Isakson's original bill was 2 pages. But the basic concept as Isakson originally proposed it seems sound; most expenses are run up in the last 60 days of life when the person isn't competent to represent themselves. By encouraging people to describe their wishes and appoint a person with durable power of attorney to act on their behalf if they are incompetent, considerable expenses could be avoided without rationing or government coercion.

I haven't had the time to read more deeply into this. I'm mentioning it because I think addressing this line of argument and any objections Isakson might have would improve the quality of the discussion.

Also, there are quite a few expenses in the current medical system which could be legitimately cut away. For starters; those without insurance tend to use the emergency room for routine doctors visits, which is not a cost effective way to do things. (And which essentially amounts to an unfunded mandate borne by hospitals, in many ways. How is that not socialism?)

Also, because there's no 'national health registry' or similar, if a patient doesn't have their previous lab results a doctor will often have the test re-run in order to cover themselves legally. This is another source of waste in the current system.

Finally, I'm not sure if the "There are about 1,300 health insurance companies in the US" assertion accurately describes the situation. Admittedly, I haven't looked into the matter deeply, but from my limited understanding there are laws which prevent interstate competition. So noone has access to all 1,300 insurers at any one time and would have difficulty moving some plans across state lines. (and I wonder if Blue Cross of Arizona and Blue Cross of Illinois are counted as two separate companies in this calculation?)

To be clear, I'm not trying to defend or oppose any particular plan here, argue whether something will or won't be a slippery slope, etc. I'm just trying to work towards a clearer understanding of the situation and what reforms might be made at what cost. I think McCain had some interesting ideas regarding health care reform that Obama shot down, and I'd be happy with, say, tort reform if it were coupled with some sort of national 'reputation system' so that quacks could be more readily identified since they wouldn't be forced out of practice for economic reasons.

Posted by: Ryan W. on August 19, 2009 02:03 PM

Ryan!

...yes, there's danger in trying to summarize the voice of a crowd in one line...

Yes, there is. Might as well say "the right" and then lump the CAFTA conspiracists in with Sowell and Krauthammer. But generalizations are essential to dialog and learning...

By encouraging people to describe their wishes and appoint a person with durable power of attorney...

I think the problem isn't so much with Isakson's bill (haven't read it, admittedly), but more with the concern a single (governmental) entity will end up controlling care, with the obvious budget pressures which are being created by the present administration. Isakson's bill may be wrongly conflated with that (though perhaps understandable, given what you've said), but it doesn't mean the underlying concern is invalid.

But thanks for the heads-up!


Also, there are quite a few expenses in the current medical system which could be legitimately cut away...

Oh, undoubtedly! No disagreement at all. I would point to over-insurance as a huge problem, a need for tort reform, as well as the "let's use the ER" dynamic you highlight above.

But this isn't exactly what's under discussion, and, worse, the tactics on display here, make may it harder to get even a sensible 'reform' passed. Though one could perhaps argue that perhaps what needs is LESS influence from the public sector...


... which essentially amounts to an unfunded mandate borne by hospitals, in many ways. How is that not socialism?

You've put your finger on one of the core ironies here: Healthcare is one of the most tightly regulated areas of business, yet all deficiencies (real or alleged) are assumed to stem from the "capitalist" aspect of it. Never mind that less-regulated areas (plastic surgery, opthamology, veterinary medicine, electronics) aren't seeing the same inefficiencies.


... prevent interstate competition. So noone has access to all 1,300 insurers at any one time...

True! And some of the ideas for improving healthcare include lifting the very regulations you highlight. But even if we assume (wrongly) that NONE of those compete across state lines, that's still 1,300 / 50 = 26 per state. Which is far more choices than I have for car companies or local electronics stores.


I'm just trying to work towards a clearer understanding of the situation and what reforms might be made at what cost.

Well, I'm in roughly the same situation. I'm just sad that I don't see more balance in the dialog. People protesting the current situation are portrayed as "racists" or "nuts", and, hey, now we've covered both sides the debate, and it's "Back to you, Wolf..."


were coupled with some sort of national 'reputation system' so that quacks could be more readily identified...

Part of the reason quacks aren't identified is because there is effectively NO DEMAND for such a system. (I believe such a system was piloted once, and they found participants didn't use it.) If demand existed, the government wouldn't need to create it (there are opinion databases for all kinds of other products, no?), and if demand doesn't exist, a government mandate won't force people to pay attention to it.

Nobody looks for quacks because almost nobody shops for healthcare as they would for any other product. Having closed networks, flat or zero copays, hidden insurance costs (deducted invisibly before your "compensation" arrives) give people no incentive to shop around.

I'd love to fix this problem, and I sense part of it has to do with decoupling healthcare from employment, but I don't exactly know how to bring it about.

Posted by: Tim (Random Observations) on August 27, 2009 11:05 AM

Decoupling healthcare from employment seems reasonable. Another thing I heard proposed by "W", though I don't know what became of it, was that, instead of expenses above a deductible being paid for 100%, that they be paid for, perhaps 90%. Then people would see some cost for a particular procedure.

I'm just sad that I don't see more balance in the dialog.

Makes sense.

Part of the reason quacks aren't identified is because there is effectively NO DEMAND for such a system.

I would think that somehow getting people to be able to evaluate the quality of care they receive, by whatever means, and choose accordingly would be critical to having a market?


Also, I'll acknowledge that the US market is probably the engine that drives international drug development, and most proponents of price controls fail to acknowledge this. However, I also think the bans on re-importing drugs from Canada, which claim that Canadian drugs may be harmful, are ridiculous. If America has to compete economically with other countries, disproportionately high drug costs are an impediment to this. Yes, re-importation or similar practices would have a price in terms of the development of new drugs. But the disproportionately high cost of US drugs, relative to other nations also has a price.

On a related note, I'd like to see the FDA be a little quicker to approve drugs developed in Europe based on the data used there, or at least allow them for terminally ill patients. I don't know enough about the politics of the issue to be able to say why this doesn't happen now. But the FDA sometimes seems reluctant to grant approval to drugs which compete with existing drugs, which seems problematic to me.

Posted by: Ryan W. on August 27, 2009 01:05 PM

...the US market is probably the engine that drives international drug development, and most proponents of price controls fail to acknowledge this.

Indeed: to kick a dead horse (I'm pretty sure I've said this here before, and you certainly just did) part of the reason Canadian or UK healthcare "works" is because US consumers indirectly subsidize these systems. Most people look at the cheap deals that these countries get from drug-makers and say: "Hey, why don't WE do that?" Yet if we did, and removed one of the final remaining free markets for such, such drugs would stop being developed.


However, I also think the bans on re-importing drugs from Canada, which claim that Canadian drugs may be harmful, are ridiculous.

The argument you cite certainly is. I'm in favor of the same thing because, among other effects, it would force drug companies to stop giving in to these deals with other nations, and let Canadians and Brits (and others) bear more of the real cost of their policies.

On the other hand, it might cause real havoc with humanitarian efforts to combat AIDS in Africa, creating a perfectly legal (not merely black) market for re-selling these drugs back to first-world nations, and probably ultimately making them impossible to obtain for poorer nations.


On a related note, I'd like to see the FDA be a little quicker to approve drugs developed in Europe... I don't know enough about the politics of the issue.. the FDA sometimes seems reluctant to grant approval to drugs which compete with existing drugs, which seems problematic to me.

Well, this is the old conservative point about how it's easier to control (or corrupt) something at its pivot point. Those in favor of more state control think that more regulation solves everything, but, of course, it is the wealthy who will always have the most access and clout with the regulators, legally or otherwise. When regulation fails to eliminate the human propensity towards greed, we just call for more of it, exacerbating the cycle. Russia was, for nearly a century, one of the most heavily "regulated" countries on earth. So it's not surprising (to me, anyway) that today it's also one of the most kleptocratic.

Drug companies (and other large companies) can *love* regulations, and this is a prime example of why they should.

Posted by: Tim (Random Observations) on August 27, 2009 11:20 PM

On the other hand, it might cause real havoc with humanitarian efforts to combat AIDS in Africa

Perhaps, but the utility of such treatments are questionable even now. I'm not sure that America re-importing from Canada will have an impact on Africa, with Europe much closer by.

Treatment regimens in most developing countries are based on a drug called stavudine, or d4T, which has severe side effects that have led to its discontinued use in richer countries. source

A quick wikipedia search shows that stavudine has a similar mechanism of action to AZT (but is preferred to AZT.) Stavudine and AZT are both thymidine analogs. Such drugs can, quite helpfully, prevent seroconversion (to HIV+ status.) But their value for long term therapy (which they are still used for in Africa) is questionable at best. AZT, for instance, was approved back when HIV was thought to kill in just months. Stavudine was approved because it was shown to be better than AZT. Thymidine analogues can kill a person's immune system and actually induce AIDS like symptoms in the long run.

HIV quickly becomes resistant to thymidine analogs (as they do to most drugs.) And once that happens, the cost/benefit balance quickly shifts against use of the drug, given its awful side effects.

Posted by: Ryan W. on August 28, 2009 10:40 AM

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