A distinction without a difference
It's fantastic that Jon's book is finally out, as it seems a long time ago that I saw a couple of early chapters--and since the Democrats win in November the mood is certainly much better for speaking about reform.
But I am not sure that there's actually a real difference between a pure single-payer system, and market-based competition within social insurance. The real difference in the reform argument is not an ideological one between those who believe that market incentives can be made to work within a context of social insurance and those who think that only one pool and one payer can achieve the desired aims. The real difference is instead between those who favor incremental change, and those who want genuine universal coverage.
Make no mistake: genuine universal coverage requires such substantial government intervention in the market that nobody in the current health care industry will be continuing to do business as usual.
If instead we tried to do the kind of wraparound plans that are being pushed by Republicans, albeit liberal ones, in Massachusetts and California, then we will find that as employers retreat from providing insurance, the pool for everybody else will be regarded as welfare. And welfare payments in America are politically extremely vulnerable.
So I think that we have a choice between incrementalism-- or bolting on extensions to the current system-- and genuine universal reform. Whether that genuine universal reform takes the shape of Canadian style single-payer, Japanese-style managed multiple payer with a single fee-schedule, UK style
nationalized medicine with a private safety valve, or Dutch style managed competition, does not much matter. We can always change it later--everyone else does!
It may be heresy to say that--and Don McCanne may send his son around to my house to beat me up--but once everybody is in some type of social insurance pool with some level of progressive taxation and cross subsidy, then how we actually organize the provision and the reimbursement of care does not much matter.
But when the chips come down and the health care industry realizes the logical consequence of genuine universal coverage, in which it is no longer possible to pass the cost on to "someone else", then we must be ready from the mother of all battles. And the desired outcome of the current players will be more incrementalism, such as yet further expansions to SCHIP, Medicaid and state programs. We will never get to universal coverage that way--and the industry that promotes incrementalism knows that.














Matthew Holt
Incrementalism is dead in my humble opinion.
The U.S. voters hunger for significant change.Health Care reform is likely to be the domestic issue that elects our next president
The argument that severe dislocations to the general economy will occur if we try to change a $2 trillion dollar plus, severely dysfunctional, "disease care" economy too quickly is nonsense.
We need bold change asap. It is actually long overdue. The risks of not being bold now are very high indeed.
Dr. Rick Lippin
Southampton, Pa
http://medicalcrises.blogspot.com
April 11, 2007 7:47 AM | Reply | Permalink
I found this post interesting with a lot of the little subtle realities highlighted.
But I am not sure that there's actually a real difference between a pure single-payer system, and market-based competition within social insurance.
the big difference I see is that a single payer plan embraces the reality that the people have a democratic say about the delivery of medicine whereas, with a market based system, the public is blocked from critiquing the system because they lose to "shareholders" and/or other corporate interests.
corporations like socialism on the business side (i.e. a monopoly) but markets on the demand side since it fragments the power of the consumer.
as an example of this, consider the medicare drug bill: the government cannot use it's purchasing power to negotiate or critique price... under single-payer, this negotiation, I assumed, is possible and actually ensures that the market (read innovation) works.
update: as I understand it, the market works when the market keeps turning products into commodities that cost less; obviously, some businesses don't like this, and try to artificially keep their prices high instead of using innovation to create products that have more value-- either because they have less side effects, produce better results, do less damage to the environment, etc...
April 11, 2007 8:25 AM | Reply | Permalink
update: as I understand it, the market works when things turn into commodities and lose value since they can be reproduced easily but companies, obviously don't like this, and try to artificially keep prices high instead of being innovative and creating products with more value.
Or if the single customer refuses to pay a premium for new products, companies may simply find ways to manufacture commodity drugs as cheaply as possible and survive on very thin margins, like grocery retailers.
April 11, 2007 8:32 AM | Reply | Permalink
If incrementalism is dead, health care reform is dead. Deal with it.
Health care reform elected Bill Clinton - with robust Democratic majorities in both houses - but even in limited form it never made it through the sausage factory. SP Now advocates played an indispensible role in killing it.
The argument whose conclusion you don't like (not that it's the main argument contra reform) is "nonsense"? How so? (You don't say.)
The options we face are:
1. No reform.
2. An increment in the direction of a desirable solution (i.e., single payer).
3. An increment in some direction off the critical path, e.g., mandates and subsidies to aggrandize the private insurance sector.
Progressives' inability to comprehend intermediate steps is the conservative's most valuable advantage.
April 11, 2007 9:43 AM | Reply | Permalink
Or if the single customer refuses to pay a premium for new products...
alternatively, the single payer system could make investments in developing better solutions. the big problem I see now is: if I pay more for drugs in order to support future development, I get nothing in return as an investor. so, in some sense, it makes sense to seperate the price of product from the company's r & d since either the equity market and/or the single payer system could make investments in r & d. and that seperation is occuring today because we're starting to get pure IP (intellectual property) companies.
April 11, 2007 10:03 AM | Reply | Permalink
alternatively, the single payer system could make investments in developing better solutions.
It depends on the details of the single payer system doesn’t it?
I assume that the agency responsible for negotiating drug prices will have some level of political accountability to the public and will be under pressure to provide access to any new drugs at low price. On the other side of the table the drug company will argue for more profit to fund development of new drugs. The public will easily win that political debate.
As the drug companies become essentially public utilities efficiently manufacturing commodity drugs, I don’t see any incentive for a research only companies since the manufactures, operating on thin margins will not be able to afford to license new drugs.
As you suggest, that leaves the single payer to take over the R&D for new drugs, funded out of tax dollars. How much will the the government be willing to allocate to R&D for new drugs given other budget needs? Who knows?
April 11, 2007 11:00 AM | Reply | Permalink
Do you mean over and above what the taxpayer/USG is already paying directly through the NIH and indirectly through subsidies to research universities?
sPh
April 11, 2007 11:51 AM | Reply | Permalink
Yes. They would assume the cost of all the applied research required to develop a practical drug and see it through its clinical trials.
April 11, 2007 12:05 PM | Reply | Permalink
RonKSeattle
Things have worsened significantly since Clinton was elected and Hillary botched her reform strategy. So your reference to almost 15 years ago is not relevant in 2007-08-09
Your three options you present are not our only choices.
We have little time left before complete economic and moral meltdown.
Even the Republicans know this. The vested financial interests are on the ropes.
It is time for single payer with a heavy emphasis on prevention
Dr. Rick Lippin
Southampton, Pa
http://medicalcrises.blogspot.com
April 11, 2007 7:24 PM | Reply | Permalink
Rick, it may be that things have worsened significantly -- significantly enough to change the rules of the game.
But if I recall correctly, public attitude surveys showed broader and more intense interest in h/c reform when Clinton was elected.
Likewise, anxiety over America's competitiveness in world markets was far more intense, with a greater sense of urgency and/or futility.
Hillary may have botched her first turn at-bat, but remember -- nobody else has ever hit that pitch.
And remember also -- single-payer purists were as determined as the Republicans to see her fail, only they got there first.
If you imagine the politics are now so easy we can't learn anyting from history, you are running an obstacle course blindfolded.
And if you think shouting makes your case more compelling, please reconsider.
April 11, 2007 8:41 PM | Reply | Permalink
Benchmarking, in comparable years in the political cycle (1990 as base year for the 1992 election cycle, 2006 for the 2008 cycle), BEA NIPA interactive table 1.5.6., medical care as a share of real chain-weighted GDP was 11.2% in 1990, 11.4% in 2006.
If you hold that the situations are radically different -- that the vested financial interests are on the ropes begging for mercy, and the economic system is moments from collapse -- you have your argumentative work cut out for you.
Can't we just agree to agree that Single Payer is a better system, and talk about how to get there? Histrionics and denial don't work for me.
April 11, 2007 9:28 PM | Reply | Permalink
As you suggest, that leaves the single payer to take over the R&D for new drugs, funded out of tax dollars. How much will the the government be willing to allocate to R&D for new drugs given other budget needs? Who knows?
well, don't the drug companies spend most of their money on marketing and much less on research? at least, that's what i've heard.
in general, I think that we need to make direct investments instead of making indirect investments through higher prices.
if we directly investment, then the public's investment is rewarded but if the public invests indirectlry, through higher prices, there is no reward.
April 12, 2007 12:20 AM | Reply | Permalink
Thxs RonKSeattle
I am always willing to learn.
I'm not sure I agree with your analysis yet.
Also on a far less important topic if you check most of my posts I often use bolding to catch the readers eye or for emphasis.
I do not view it as "shouting"
Who wrote the book on e-mail or blogging etiquette? I'm curious.
Be Well,
Dr. Rick Lippin
Southampton, Pa
April 12, 2007 6:04 AM | Reply | Permalink
“well, don't the drug companies spend most of their money on marketing and much less on research? at least, that's what i've heard.”
I don’t know…I hear wild claims on all sides of the health care debate.
“if we directly investment, then the public's investment is rewarded but if the public invests indirectlry, through higher prices, there is no reward.”
It really boils down to ideology doesn’t it? Do you trust a central government agency making decisions about which drugs to attempt to develop and how much to spend on it or not? What if that agency is controlled by Republicans?
April 12, 2007 6:34 AM | Reply | Permalink
I have to agree that excessive use of bolding and all caps is annoying and is generally inversely proportional to the quality of the post.
April 12, 2007 7:00 AM | Reply | Permalink
Well put.
I absolutely agree that incrementalism will not work and we must move to a publicly funded medicare for all type health care system.
April 12, 2007 7:34 AM | Reply | Permalink
Footnote: Some may object to the yardstick employed. Alternatively, 2006 Q4 medical (in nominal $$) was 12% of respective nominal GDP.
April 12, 2007 8:54 AM | Reply | Permalink
Robert Brown
Thanks for your comment on bolding or using caps in blogs
Off health care reform topic but when I observed the birth of USA TODAY I realized that image was competing with small font language for eyeballs for better or worse.
Also note that TPM Cafe uses not only very large font maroon headlines for their stories but photos of writers as well.
The venerable New York Times also has added photos of their Op-Ed Writers
So I dont't feel so bad using bolding or CAPS from time to time in my comments :)
Be Well,
Dr. Rick Lippin
Southampton, Pa
April 12, 2007 10:48 AM | Reply | Permalink
"from time to time" is the key.
You are a humble commenter here, not the publisher.
April 12, 2007 12:13 PM | Reply | Permalink
now I get it- commentors are suppposed to be humble
Thanks for the tip. I'll think about it. :)
Dr. Rick Lippin
April 12, 2007 2:32 PM | Reply | Permalink