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Why Does Health Care Reform Have to Cost Anything?


After establishing that we pay twice as much for health care as most countries, why exactly should health reform cost *MORE*???

It's a question Bob Somerby at DailyHowler keeps asking, and it's a good one.

I've been hearing for 10 years how medical records will save us billions. What else are our inefficiences? Lack of competition? Drug development costs?

But I really want to know why if we're already twice as expensive as the rest of the world in healthcare, and we're reforming the system, why it can't cost less. Do we owe someone something?

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It doesn't. I fact our whole approach is totally upside down. We put more money, time and energy into treatment than prevention.

Any possible cure takes for ever to get approved, if at all. Think how much money the health industry would loose if an actually cure for say cancer or heart disease where to be found.

As my own doctor has observed hospitals are suppose to help people to heal but are set up to do the opposite.

And we pour millions of dollars into patients who are just barely clinging to life, most of the time suffering outrageously. In stead of allowing them to die with dignity and some degree of comfort.

C

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I'm not sure the "prevention" think isn't a myth. Do Europeans really do that much in the way of prevention? I think they tend to drink much more for one. But I think in terms of treatment, they get *timely* treatment, rather than putting things off because of costs, unavailability, paperwork, just gross bureaucratic hurdles to simple measures.

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They don't eat the same amount of corn-based products as we do and tend to get more exercise because their societies weren't designed around the automobile. Prevention can simply be a life-style that is more conducive to general well being.

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nice point Jason

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That's pretty anecdotal. A lot of Europeans live in suburbs and drive. A lot of Americans are sports nuts and have health club memberships. Health food and supplements are booming in the US, including the Whole Foods chain. Europeans drink plenty of cheap sodas. Maybe the statistics just haven't caught up.

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I'm wondering what the cost of emergency room care plus mandatory hospital stays in the US is each year, and how much of it is connected to people with no insurance ? Also, having lived for some time in a european country, I can agree that most people visit their doctors in a reasonable time because health coverage is universal, and there's no economic benefit to the individual or the state in waiting.

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Pretty anecdotal yourself. The statistics don't support the idea that Europeans eat as much corn-based food as we do or as unhealthy as we are. We spend more on health care largely because we are sicker as a nation because of crappy diets and lack of exercise.

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What statistics? I have to follow your anecdotes with hard cold figures? Yes, there are articles on developing European diabetes, quite possibly from new diets laden with corn syrup.

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I agree we have competing anecdotal points. I also agree that we appear to be exporting stupidity now and Europe is starting to see some of the same ill effects. I suspect their health care expenses will go up accordingly if they don't reverse the trend as well.

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It is a complex situation that no one completely understands. However, no one realizes nor admits this, so the problem remains.

It will get MUCH worse before it gets better.

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Especially when the military cuts can pay for some of the cost.

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Exactly ! Knock off two wars or so, threaten the Israelis if they start acting like they want to start a new one, and health care coverage reform should present no problems, not to mention the added savings for the VA hospital system.

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Just got through watching the last part of Bill Moyers tonight and the one thing missing in this debate is how the health insurance industry as well as the health care industry both profit from one another. The for-profit hospitals and more than a few non-profs, the medical labs, the radiology labs, the medical group businesses.

And you will notice that all these people seem to be very OK with the cost of health continually rising. They are all in bed together.

A whole family of parasites and leaches.

C

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I was quite annoyed by the TPM article with headline proclaiming that the CBO had found savings of billions... over ten years. We should be seeing savings of trillions over ten years if health care cost reform is for real.

The cost to go to supposedly more efficient and useful means of medical record keeping is supposed to be in the initial setup, buying computers and software and loading stuff into them. I think it's bull. I don't believe the savings are all that big in general. And then no more handwritten charts everything has to be entered into a database so there will be ongoing costs which might eat up most or all of the alleged savings over current methods. And just how often do you need old x-rays STAT? Rather it's an attempt to erode privacy and doctor-patient privilege (once the data is online the NSA will have a back door and so will others). Of course once someone else pays for your health care, you don't deserve total privacy anyway, and if tax dollars pay for it, why shouldn't your medical records be public?


Okay, I'm not entirely against improving how records are generated and kept, and sometimes speedy access to records is a good thing.

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It's the idea of a clearinghouse database that bugs me. I think it should be more of a peer-to-peer model.

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Twitter? ;-) Decentralized, certainly, flexible, using basics like defined SOA interfaces to get at information, and better search techniques than 40 year old Date and Codd.

With a campaign run on Facebook, you'd think these guys would think out of the box in IT stuff. And it wasn't long ago that Celera kicked the NIH's ass on the genome mapping project, coming in at 1/10th the cost.

Are we working with Uncle Ted's 40-year-old vision, or what's the problem?

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Exactly right. We are still applying decades-old "solutions" to problems that have gotten substantially worse.

Modern IT could cut the cost of health care dramatically and we are arguing about privacy issues? It would be as private as any other information and absent pre-existing condition exclusions would be mostly benign.

I am tired of soundbite solutions to complex problems.

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I see your point, less access. But what defines a peer and what authorizes access which cannot be easily faked?

And a big point remains, will it REALLY save all that much money and/or provide that much better service?

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I have not really put much thought in to it, but off the top of my head: I'd imagine something along the lines of a file-sharing network, with master indexing servers that provide routing information to the various physician nodes.

The primary physician would be the keeper of the master record. Secondary and tertiary health care providers could access the information in a volatile fashion - i.e. the patent history doesn't become a permanent record on their system. Each health care provider would maintain a record of the health services they provide which would synchronize back to the master record that would maintain an aggregate record of all health data.

Access to the primary record at the physician's facility could be handled like access to physical records are handled today - giving the patient control over sharing their health information. This would be strictly controlled and limited to use in providing specific individual health care services.

Patients would have the option to allow parts of their record - scrubbed of identifiers - to be accessed for system-wide analytic improvements, but this would be controlled by the patient and collected through a neutral government entity that provides equal access to the aggregate information - not by a private software house that captures the information of it's users as a secondary source of revenue by selling access to their information.

That's just a rough sketch ... clearly issues would need to be fleshed out a bit. I need to put a bit more thought in to it - the idea just sort of popped in to my head last night when reading your comment.

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If you have a peer to peer model, the whole point is there is no 'master record'. What you are advocating is a two layer client-server model.

Also, volatile access as a security feature is impossible. If you can see it, you can record it.

Also, that sort of synchronization would be easily broken into, and why would it be necessary?

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"Should be seeing" is not exactly a convincing argument.

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It's not an argument, it is a criticism.

What's the point of making miniscule marginal cost reductions (which aren't really reductions, merely reducing the increases)?

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I'd agree except that the data in aggregate can be very useful to society. If we have complete records of diagnosis, treatment, and outcome, we can use the data as if it were a clinical trial. We can start eliminating procedures that don't work and emphasizing those that do. In short, we can use the data to develop best practices with an accuracy not seen before.

My cousin works for Cerner, a medical software company in Kansas City, and they do just that. When a hospital signs on with them, they often use Cerner's facility to store data, and release the data to be accessed by other doctors (with patient names scrubbed). They can look at large scale statistics or get in depth with case studies.

In my opinion, that's a great reason not only to get more providers digital, but also to make sure their data can be stored in a standard way along with everyone else's.

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Great distinction. Paranoia about information access will keep us from pursuing the best possible solutions. Get rid of pre-existing conditions via strict regulation and the data becomes purely academic.

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How much do they charge for selling their patient's data? Do they get patient permission first?

If they sell the information or disseminate without patient permission, this practice bothers me greatly. The data does not belong to the software company or the hospital - it belongs to the patient. While I don't disagree there is some benefit to "society", there is no excuse for disseminating a single bit of user information without express permission. It is a violation of the most basic IT ethics that accompany maintaining sensitive databases. In particular, the ability to hone in on one patient's record as a "case study" is an insidious violation of patient trust.

While I do see many possible benefits to "society" at large, this is not justification for breaching a patient's health-care details. There are some things that simply shouldn't be considered owned by the public - one's health records are certainly in this category.

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I don't have details on their operation, I assume they operate within the law. :) I know HIPAA has strict rules that they are required to follow.

In general I'm not sure I'd agree. What if we were talking about auto mechanics creating a database for sharing their techniques and results with other mechanics? Do I own the data on what the mechanic did to my car?

How about H&R Block? If they release statistics about the deductions they were able to claim for their clients, is that wrong? It's certainly private financial information being compiled and released.

Do we really want to forbid such things? I can certainly see a problem with information having a name attached to it. But anonymous information that happens to be incredibly useful? I'm fully behind collecting that.

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Yes. We owe the insurance companies, pharma, etc. a severance package, payable into the future for some undisclosed period of time. Like the Hotel California, their lobbyists are making sure we can check out anytime we like, but in fact, we can never leave.

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Or that we can leave, but our bar tab is ever open and accruing. "Hey, guys, drink up! Those schmoes from Missoula left their credit card here!!!"

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HOW DARE YOU, DENIGRATE "HOTEL CALIFORNIA".

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I can give you a couple of examples that have been well documented, but I am guessing that if you go to the web sites of your local hospitals and clinics you will see the majority of them have CT Scanners and MRI machines, which are over $1M/each. So they try and use them so they can bill and recoup the cost - but are they necessary.

In critical care units, the nursing staff can do blood glucoses at one hour intervals...are they necessary?

An individual sees a "newly diagnosed disease" on TV...and they may have it...so off to their physician who may or maynot be able to diagnose the illness, but the patient demands the drug, which requires monitoring...more cost...and because the treatment doesn't cure, but does eliminate the symptoms, so now you are on a medication for life.

Which works better for preventing blood clots, PLAVIX or Aspirin...which is marketed?

When you have consumers demanding things with insufficient knowledge and physicians give in to their demands or lose the patient...which action is most likely to happen?

How many real studies are necessary to prove gall stones vs how many studies are given? How many surgeries are performed unnecessarily?

You want to see costs for no reason...there you go! The change may be because we know so much and the medical community has so many ways to diagnose and treat...they use them all regardless of cost. And the patient is happy because they think they are getting the BEST care.

In order to save money, there needs to be a change, not just by physicians, hospitals, clinics, but also Patients...and that will take time - and Americans are not patient people, we want immediate solutions to all our medical ailments and drugs to solve many problems. Go to the AHRQ website and see how many people by age are on medications - it is astounding.

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At risk of being obtuse, there are two "costs" here:

1. Cost of operation, which as e.g. the CBO and pretty much any sane entity with any understanding of mathematics tell you will be less than the current system.

2. Cost of transitioning to the new system, including the organisational and logistic restructuring and, in many cases, outright creation thereof -- this means anything from administrative structure to claims handling process to personnel to districting to provider liasoning to contract negotiation to medical record consolidation. In addition, responsible calculations would take into account e.g. the costs of the current insurance corporations' employees having to find new jobs etc. This is where the "extra" cost is.

It will cost more, and it will never be a direct money maker for the country (increased output through improved living standards is too complex for most "conservatives" to understand), but that is OK. It is the right thing to do.

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I should clarify: without taking into account all the reciprocal effects of the reform, the startup cost will be covered by savings in the cost of operation in about two decades, in my estimate: I think the rate of savings will dramatically increase as boomers get older.

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We've all had to drop our cars off at the mechanix's shop for repairs and the bill for services is based on the flat rate.

Flat Rate or Actual Time
If the actual time it takes to repair the vehicle is LESS or MORE than the estimated flat rate time, the customer still pays the flat rate amount. More experienced auto technicians and techs with time saving tools can most of the time beat the flat rate time (AKA book time). The technician, if paid by flat rate has an incentive to do the job fast and correctly. If he makes a mistake and has to do the job again (commonly called a comeback) he does it the second time for free! Also keep in mind that a flat rate technician does not get paid time and a half for over-time, or for standing around waiting for work or parts.

Now exchange technician with doctor, nurses, staff, hospital and the problem is solved. Getting paid by flat rate hasn't deterred people from starting auto mechanix shops to service people's needs. In fact, many make a pretty good living repairing people's cars because they can do it for less than the major auto dealers with better results and customer satisfaction.

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I think there's a basic misdirection at work here. The program will "cost $1.5 trillion over 10 years" we hear, but that's not in addition to whatever else we'd spend in 10 years under the current system, it replaces it.

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I am with you here Destor. Hope you do not mind!

hahaha

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Yes, that would replace some of it, but not all if we allow the current insurance thievery to contiue unabated.

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This is a classic case of liberals getting lost and confused in their own multiple arguments.

The core issue that prompted the debate was the fact that we have up to 50 million people without health insurance. That gave birth to proposals for mandated universal coverage.

Given that we are a nation divided, this in turn created a backlash against turning to socialist models to solve any problem.

That's when the classic liberal tactic unfolded in front of all of us.

First, the stopped stressing universal coverage and focused on the overhaul instead, intending to bring the universal mandate under the guise of the overall reform.

Second, they had to convince the public that the system was failing. So they latched onto any report that would help paint a picture of epic failure. OECD, as always, obligingly provided statistics. Dozens of TPM bloggers were laboring on posts showing our system sucks. Infant mortality! Spending per capita! Terrible quality of healhcare.

Third, liberals simply couldn't resist firing shots at their favorite scapegoats. Insurance industry - oligopoly! Capitalist bloodsuckers!

In the process, the original intent of universal coverage was completely overwhelmed by the hysterics of fixing our "failed system" and "teaching insurance companies a lesson".

And when the cost of the "reform" became known, the liberals got hit on the ass by the very argument they thought would help THEM.

It's been a while since Obama noticed any "green shoots of recovery" on the economy last time. Given his slipping numbers on handling the economy, it's no wonder the cost of the reform would freak out a lot of people.

And now that more and more people are going to ask Desi's question, liberals are left trying to square a circle, but the genie is out of the bottle.

Since the liberals made cost the central argument for "reform", they are now blocked from bringing back the original call to arms on universal coverage mandate.

The moral of the story: they wanted to bring change but ended up replaying the same failed tactics.

It's over. No reasonable person should buy an argument that we have to pay more to pay less.

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I think you're getting lost and confused among strawmen and fantasies about what "liberals" believe and do. You might also want to look into the "Fallacy of Misplaced Concreteness."

As for "predictable liberal point[s]," predictability often comes from having to repeat oneself when speaking to those who have cultivated an immunity to logic. And unpredictability isn't really a feature of proper reasoning anyway.

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"predictability often comes from having to repeat oneself when speaking to those who have cultivated an immunity to logic."

- I suppose it's the lack of logic that prevents me from seeing an answer to the question in the original post, that must be so clear and obvious to you.

Perhaps you can englighten me, the Logical One?

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I think you're understanding is wrong if you think that: "The core issue that prompted the debate was the fact that we have up to 50 million people without health insurance". Our inflated costs have been the core premise of healthcare reform for almost 20 years now. If by reducing our costs, we can cover those uninsured, then that is a supplemental progressive goal, but we wouldn't even be having a discussion of healthcare costs in the US if we weren't paying too much in the first place. It is in fact the ultimate conservative as well as progressive agenda to make the US more competitive on the world economic stage by reducing those costs. Without that, we will not be able to afford much of anything we value as Americans.

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Except, of course, that Gawande's facts are woven together to make a predictable liberal point about evils of capitalism:

http://www.thehealthcareblog.com/the_health_care_blog/2009/06/mcallen-is-now-a-tale-of-three-counties.html

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You obviously speak from ignorance of the article I cited and the article you cited. You certainly have not had time to read and digest either. As further proof I offer your comment,

"Except, of course, that Gawande's facts are woven together to make a predictable liberal point about evils of capitalism."

This comment is not supported by a neutral reading of the Gawande essay nor by any reading of the article you presented.

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But it is.

Gawande's main issue is that when doctors decide to engage in making money as opposed to practising medicine in his way, costs go through the roof.

He's trying to equate these "evil" doctors to AIG and Wall Street - essentially latching onto the favorite talking point.

Enter the Mayo Clinic - to create the dramatic constrast. And the entire assertion rests on cherry-picked facts comparing the two counties.

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These are your words not Gawandes.

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"Something even more worrisome is going on as well. In the war over the culture of medicine—the war over whether our country’s anchor model will be Mayo or McAllen—the Mayo model is losing."

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I dunno, Lalo, there are some good comments there on Gilden's post that present problems for his arugment. Like these ones:

Posted by: Jon Skinner | Jun 22, 2009 2:08:45 PM:

....The most interesting part of the story has been ignored so far. In 1992, Medicare expenditures in the two regions were nearly identical. So what caused McAllen spending to triple during 1992-2006? Not disease - the cardiovascular mortality rate grew at about the same rate in McAllen as in El Paso. One cannot explain the divergence over time by appealing to changes in reliable measures of health status.

The McAllen-El Paso paradox is not about risk adjustment, it is about profit-driven health care.

Posted by: Jon Skinner | Jun 22, 2009 2:21:52 PM:

One additional lagniappe: The 2008 Dartmouth Atlas (John E. Wennberg, lead author) compiled treatment patterns for people in their last 2 years of life. These data are available on the web; the Texas report is at http://www.dartmouthatlas.org/data/download/perf_reports/TX_HOSP_perfrpt.pdf

The great thing about these data is that they provide information about individual hospitals. For example, we find out that in El Paso, patients treated at the Del Sol Medical Center accounted for $1,219 in ambulance expenses. This is averaged across all patients in the sample, and not just those who required ambulance rides. This was the most expensive hospital; the others were closer to the national average of about $775.

Now let’s look at the same ambulance expenses for McAllen hospitals: $5,199 for the Mission Regional Medical Center, $4,576 at the McAllen Medical Center, and $2,404 at the Rio Grande Regional Hospital. This is not about risk adjustment and sicker patients or longer distances to travel (many patients in El Paso come from New Mexico). Nor is it about immigrants (who are not included in the dataset) or about snowbirds (whose spending is largely allocated to their home states). This is about a local health care system optimized to maximize Medicare billing.

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art: I have no doubt these numbers are correct.

But they do nothing to refute Gilden's central point: Gawande is under-reporting cost of healthcare in counties with HMO enrollees (McAllen vs El Paso) and overlooking statistics on prevalent conditions such as diabetes, heart disease and heart failure that are unique to McAllen versus other counties in his article.

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That is not true.

from Gawandes article;


Yet public-health statistics show that cardiovascular-disease rates in the county are actually lower than average, probably because its smoking rates are quite low. Rates of asthma, H.I.V., infant mortality, cancer, and injury are lower, too. El Paso County, eight hundred miles up the border, has essentially the same demographics. Both counties have a population of roughly seven hundred thousand, similar public-health statistics, and similar percentages of non-English speakers, illegal immigrants, and the unemployed. Yet in 2006 Medicare expenditures (our best approximation of over-all spending patterns) in El Paso were $7,504 per enrollee—half as much as in McAllen. An unhealthy population couldn’t possibly be the reason that McAllen’s health-care costs are so high. (Or the reason that America’s are. We may be more obese than any other industrialized nation, but we have among the lowest rates of smoking and alcoholism, and we are in the middle of the range for cardiovascular disease and diabetes.)

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Yes it is true.

"Relatively few McAllen area Medicare beneficiaries are enrolled in HMOs (2%) in comparison to Grand Junction (42%) and El Paso (16%).

Medicare publishes costs only for services paid on a fee-for-service basis; some services supplied by cost-based HMOs (more common in Grand Junction than in either McAllen or El Paso) are included and some are not.

As a result the cost of care for counties with high numbers of Medicare HMO enrollees is under reported."

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Guess I should have been more explicit. The 2nd part of your statement is not true.

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Yes it is true.

"Exhibit 4 uses estimates of population rates of disease derived from Medicare hospital and physician claims to reveal that the prevalence of chronic disease is substantially higher in the McAllen Medicare beneficiary population than in Grand Junction or El Paso; and that the proportion of the McAllen Medicare population with more than two of these conditions is a whopping 52%, in comparison to 23% in the Grand Junction area and 34% in El Paso."

"By eliminating diabetes, ischemic heart disease or heart failure from the population payment measures the Grand Junction advantage is completely removed. Grand Junction is just as costly as McAllen for populations without one of these conditions."

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Apples and oranges

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actually I should have said cut and pastes. rather than cut and paste snippets from an article that has been criticized by many in the medical field provide some original thought , seems to me you have little if any understanding of either article.

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So, are you going to enlighten me or keep hiding behind "not true", "apples and oranges" and "cut and pastes"? Perhaps you have nothing to say?

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read the comments section of the link provided. Medical professionals skewered the writer and had him for lunch. GILDEN SAYS IN COMMENTS;

I do not want to make this argument to obscure the value of Gawande's work - I think he is more right than he knows. I do not disagree with the need for a very thorough review of the incentive structures that physicians, hospitals and home health agencies are subject to (and creatively react against). Cost containment efforts for different provider types frequently work at cross-purposes and are in many cases counter-productive. I am concerned that the McAllen argument leads to a false conclusion that overly focuses on bad actors in specific locales as opposed to structural faults that are pervasive.

Posted by: Daniel Gilden | Jun 22, 2009 1:27:44 PM

Gilden is not saying what you are saying.

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Did you read this bit from Gilden himself?

I do not want to make this argument to obscure the value of Gawande's work - I think he is more right than he knows. I do not disagree with the need for a very thorough review of the incentive structures that physicians, hospitals and home health agencies are subject to (and creatively react against). Cost containment efforts for different provider types frequently work at cross-purposes and are in many cases counter-productive. I am concerned that the McAllen argument leads to a false conclusion that overly focuses on bad actors in specific locales as opposed to structural faults that are pervasive.

Posted by: Daniel Gilden | Jun 22, 2009 1:27:44 PM

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Yes I did.

My point is perfectly summarized by Gilden here:

"I am concerned that the McAllen argument leads to a false conclusion that overly focuses on bad actors in specific locales as opposed to structural faults that are pervasive."

And that's exactly where Gawande's article is wrong. El Paso, McAllen vs Mayo - "bad" medical model versus "good" medical model.

That's not structure, it's ideology and it has been Gawande's favorite pony for years now.

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He doesn't disagree with Gawandes premise, in fact he agrees with it. His disagreement with Gawandes approach (single locale)is that it doesn't properly recognize that the scope of the problem, He in fact states that it is more pervasive.

This is your original premise on the Gawande article;

"Except, of course, that Gawande's facts are woven together to make a predictable liberal point about evils of capitalism:"

The Gilden article, you provided, refutes your claim rather than sustaining it.

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Yes he does

"Is McAllen an extreme example of a bad physician culture or is there another explanation? "

Read from the beginning, slowly. He's taking Gawande's central premise (bad med culture leads to high cost) and breaks it to shreds.

There is no disagreement that there are problems with healthcare.

I'm done here.

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you were done when you started

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You obviously did not read the article. It is excellent, and has no "liberal" bias at all. Why don't you go ahead and read it; you really would learn something.

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Getting yourself convinced by Gawande's article and thinking critically about it's content and message can both mean "learning something".

You do the former as much as you already do, but allow me do the latter.

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Convinced of what? You still haven't bothered to read it or you wouldn't make such a silly comment. OK, Lalo, here's the Cliff's notes version (I guess that is the way you like to do your reading):

A small town in Texas was noted to be an outlier in medical costs, as in spending way more than any other town in the country. Gawande went there to observe in order to learn. He ruled out several obvious causes [better outcomes, sicker people, over-testing for malpractice - although it was suggested by one person he interviewed - Texas has a relatively low cap on malpractice].

Long story short (that's what you want, right?) doctors were simply over-testing, over-treating, and over-operating on people because it gradually became the norm. He contrasted this to the Mayo Clinic, which, as a referral center, obviously sees more complicated cases. But they test, treat, and operate less frequently. They tend to use judgment rather than ordering every test they can think of to rule everything out.

I probably haven't done the article justice, but I found it very interesting, and it deserves a place at the table for those who are trying to reduce costs; the Mayo model is one that needs to be included in the discussion.

Your condescending response to my suggestion that you read an article that you were too lazy to read does not move the conversation forward, but like most of your ilk, I realize that moving it backwards is really your goal.

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Your condescending assumption that I haven't read it, your ignorance of the particulars of the debate moves the conversation by leaps and bounds. You just made 2 drive-by comments without even bothering to understand what I've objected to. But, like you say, maybe that's your goal.

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I wouldn't say goal, just CVille's SOP.

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Gildens comment on his own article;

I do not want to make this argument to obscure the value of Gawande's work - I think he is more right than he knows. I do not disagree with the need for a very thorough review of the incentive structures that physicians, hospitals and home health agencies are subject to (and creatively react against). Cost containment efforts for different provider types frequently work at cross-purposes and are in many cases counter-productive. I am concerned that the McAllen argument leads to a false conclusion that overly focuses on bad actors in specific locales as opposed to structural faults that are pervasive.

Posted by: Daniel Gilden | Jun 22, 2009 1:27:44 PM

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You must be very VERY stupid to assume that Gilden would pushblish an extensive post on Gawande's article and then take everything back in the comments section.

It's precisely the point he made in the comments that supports every comment that I made in connection with this article.

It seems to me you're unable to understand or follow the discussion that starts off with you pointing to Gawande's articale as a list of "waste in the system" (it doesn't), then moves on to his real point (ideology) and concludes with the fact that Gilden's comments deal precisely with what Gawande omits: structural problems. Not the ideological model of McAllen vs Mayo Clinic.

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He did not "take everything back", he merely explained that his had been misinterpreted by some of the commenters. He was wise to do so, after all, you got it ass backwards.

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Props for not responding to the "very Very stupid" comment by our resident misanthrope. I really didn't get the impression that those doctors were "bad actors," but that over-doing things had become the norm, and a mindset whereby "when someone's sister gets an MRI for her hip pain, by golly, their niece should get one too if her hip hurts."

It is hard to say no to a patient asking for a test or treatment, when you can't prove that they don't need it. If a doctor's judgment, which doesn't include crystal ball reading, is imperfect; he/she will miss something, and sometimes the consequences are very bad. The way to get around that is to have frequent follow-up. The problem with frequent follow-up is waiting times. I don't dispute that some docs order things that will benefit them financially one way or the other, but I don't think it is true of the large majority of physicians. I do think bad habits get ingrained, and have to be unlearned, and docs have to be protected from lawsuits when they have done what was appropriate.

This isn't simple, but if Mayo can do it, they can also teach HOW to do it. And the rest of us need to learn to manage our expectations (I didn't say lower them). Hospitals are dangerous places and should be avoided unless necessary.

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YEAH, MAYO, WHO ARE THEY. LOL

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We have many things wrong with the health care system that no one in Congress - democrat or republican - seems willing to address. All we get are soundbite solutions. Medicare-for-All or Status Quo. We rearrange deck chairs on the Titanic while arguing about the nature of icebergs.

Forgive the copy from another blog comment, but I think the situation could actually be solved by attacking the individual pillars that make up the problem. I will add a new point at the end of the list, gleaned from comments on this blog.

First, we must regulate the for-profit health care industry to within an inch of its life. It will no longer be acceptable to profit off of denying care or claims. Add a mandated medical IT system that everyone uses. Perhaps one developed by the government and leased to private industry. Do it under HIPPA to make implementation easier by going around Congress. The savings derived through a new regulatory environment ruthlessly applied will be almost immediate. If health insurance companies can drive a profit in this environment, they should be allowed to do so. If not, we develop a new non-profit code that allows them to stay in business without crippling the health care system.

Second, fix Medicare and Medicaid to be more cohesive, cover 100% of market rates and offer it as the "public option" that any American can buy into at a set rate determined by your specific local. This will turn the Medicare roles into one that is more representative of the country as a whole and drastically reduce its costs. The system as it stands right now will collapse under the weight (literally and figuratively) of aging Boomers and the newly disabled by way of diet. I think local implementation by way of state-run Medicaid programs operating under federally mandated and financed provisions would take some of the potential for abuse out of the system should the effort stay solely focused in Washington.

Third, outlaw pharmaceutical advertising. OK, it may be a first amendment issue or whatever, but we have plenty of exceptions to the Constitution and this should be one of them. They spend ten times the amount they spend on R&D through direct-to-consumer advertising of prescription drugs, many of which were approved under one set of trials and are now being proscribed for secondary affects that have never been tested. They then pass that cost on to the system as a whole with no real benefit to anyone but themselves. The FDA needs to be more Eliot Ness and less Lock Ness. Since most drug research is funded by the public, these companies need to be more willing to proscribe their place in society via stricter regulation of their activities.

Fourth, health care providers must implement the same IT system designated to the insurers. They must not over-charge for procedures (or pills or pillows) in order to get some percentage of that paid. Perhaps we set reasonable market rates for basic care via the public plan and that flows into the system as the baseline. Specialists who aren't covered under Medicare (elective surgeries and the like) will be allowed to charge whatever the market can bear. I am not sure how the balance of public versus private concerns would be established, but it is important to designing a sustainable system.

Finally, as many mentioned above, the patient needs to take responsibility for their health. It is long past the time we can shove whatever we can in our mouths and expect to be healthy or expect the health care system to be infinitely scalable to address poor personal decision making. We didn't use to be a nation of fatties with no desire to get outside and play. The movie King Corn discusses how this came to pass, but I was startled to find out it was the farming policies set by one man by the name of Earl Butts that continue to be in force today despite the huge amount of damage they have caused.

At the end of the day, the idea that "single payer" will be a panacea that saves us all is not factually correct. There are too many other things that must be addressed to make reform work and the method of payment is just one of them. No other country in the world with our complexity of competing interests has settled on a strictly single-payer system. In fact, most are a combination of solutions both private and public. Liberals must realize that we have an existing system that must be molded to our needs because starting over isn't an option. Conservatives must understand that status quo isn't an option. Both camps need to use the strengths of various approaches to counter the weaknesses in others.

My only question is when will the adults take over the conversation in Washington rather than partisan hacks?

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"My only question is when will the adults take over the conversation in Washington rather than partisan hacks?"

- My only question is: you're describing solutions without identifying what exactly is the problem.

The key problem with the current debate over the "reform" is that people can't seem to agree on what the issues are, but everyone has a recipe on how to fix it (them).

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The problems are self-evident when taken in context to the proffered solutions.

Please cite a specific "solution" that doesn't fix what many agree are our existing problems. We have multiple issues that must addressed as a part of reform and ignoring any one of them will ensure failure of the overall effort. You seem to take exception to anything that makes business more accountable to society, but perhaps that is a misreading of your comments here.

Did you have alternative solutions to offer or just vague criticism?

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I like all of your solutions.

I'm pointing out that despite the fact that "many" may agree, it's far from certain we actually understand what the problems really are.

Is it size of current coverage? Cost of mandated coverage? Quality of care? Profits of insurance industry? Regulation of insurance market? IT waste? Aging population? Cost of medical education? Cost of drugs? Drug patent limits? Cost of base sevices? Cost of technology? Health state of the nation? Food industry?

If it's ALL of the above, then no wonder this "reform" cicrle ended up where it has.

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It is certainly all of the above, but we can't hope to address them all at once. Many are affected by each other, so we may need to fix one thing, monitor the effects and then move on to a second or third thing that is tangentially related.

Most of the above will take the next decade to come into fruition in terms of lowering costs and making the whole system more sustainable. It will take at least a decade to re-engineer our food supply and education system and community development trends to address a more sustainable life-style.

No simple solution exists, which I think is what we are both driving at when the left shouts "Medicare-for-All will fix everything!" and the right shouts: "Just get out of the way of the free market!"

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In that case, I think we disagree.

In my opinion, the only real problem is the cost of medical services (procedures, drugs, hospital stays, tests, etc).

Everything else is a compounded complication or the consequence of the house of cards we created in the 1960s.

If most people were able to pay for them out of pocket (as I think they should), we wouldn't have the budget collapsing under the weight of aging population, we wouldn't be pointing accusing fingers at the insurance industry, and so on.

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Medical costs are directly related to payment systems that negotiate the price of everything down to what they are willing to pay and pass the delta on to their customers. That happens with both private and public insurers.

We can establish baseline costs for medical services and still not have a sustainable system if we don't fix the food we eat or change a society that says you can be healthy by taking a pill or going under the knife.

I don't think it is accurate to point to any one problem as being our Achilles Heel, but if I had to pick one problem, it would be our diet and lack of exercise. The reason everyone goes to the doctor so much is because they feel like shit all the time. Some vague disease that thousands of commercials tell them can be cured with a pill. If people felt better they would use less health care and the cost of services would drop due to decreased demand.

Again, I don't believe addressing any one problem to exclusion of all others will lead to the results we need.

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"payment systems that negotiate the price of everything "

- but payment systems can only go that far in negotiating the price.

No matter the discount, you're still stuck with the underlying cost. To me, that's the problem that is completely absent from any debate, while being responsible for 99% of issues.

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The whole system is out of whack. We don't know the underlying costs because we have no objective data by which to determine what they should be.

Japan focused on costs to the exclusion of other reforms and have designed a system that is not sustainable, even with their mostly healthy population. We aren't nearly as healthy in the aggregate as most countries with some form of national health care and have way more people to cover.

I am not sure how you can discount the underlying health of a society when determining how much health care should reasonably cost.

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I see two problems - one is the complications in getting reasonable treatment, and the second is the lack of health care available for everyone.

I'm agnostic about how it's paid for, who makes money off it, whatever. All side issues of having health care available and in a non-excruciating way. (My dealing with referrals and 4 month waits for basic tests even with "good" insurance makes me touchy).

The "rationing health care" bit is of course nonsense - all health care everywhere is rationed in various ways. Doctors decide if certain treatment is warranted, and health plans decide if treatments are too costly for general availability. It happens everywhere.

I'm against proscribing advertising drugs. Advertising is just one form of information, one form of communication. Regulating it for accuracy is the only thing I care about. Communications is just one way of doing business, and the internet makes it cheaper.

Still, greater use of medical IT should decrease costs - records, monitoring equipment, communications.... More purchases of expensive medical machinery should bring down cost per unit. Various improvements in pharmaceuticals should decrease research costs and associated costs of bringing drugs to market. But for some reason we keep seeing the opposite. I must admit, I'm a bonehead in this area and don't read in it at all, and understand that there are a lot of personnel costs that don't go down in the medical field.

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I see two problems - one is the complications in getting reasonable treatment, and the second is the lack of health care available for everyone.

I'm agnostic about how it's paid for, who makes money off it, whatever. All side issues of having health care available and in a non-excruciating way. (My dealing with referrals and 4 month waits for basic tests even with "good" insurance makes me touchy).

The "rationing health care" bit is of course nonsense - all health care everywhere is rationed in various ways. Doctors decide if certain treatment is warranted, and health plans decide if treatments are too costly for general availability. It happens everywhere.

I'm against proscribing advertising drugs. Advertising is just one form of information, one form of communication. Regulating it for accuracy is the only thing I care about. Communications is just one way of doing business, and the internet makes it cheaper.

Still, greater use of medical IT should decrease costs - records, monitoring equipment, communications.... More purchases of expensive medical machinery should bring down cost per unit. Various improvements in pharmaceuticals should decrease research costs and associated costs of bringing drugs to market. But for some reason we keep seeing the opposite. I must admit, I'm a bonehead in this area and don't read in it at all, and understand that there are a lot of personnel costs that don't go down in the medical field.

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Desi:

- are you against all advertising or just drugs? If the latter, is the advertising the problem or the cost? In business, advertising costs money but brings increased usage and is factored in cost per unit. It helps sell more units and pay for itself. I think your issue is drug cost, no advertising.

- technology reduces cost per unit of output: once the cost of technology is amortized over time. But technology in a limited market can be so expensive it won't result in lowering unit costs as fast as we would like. Especially if there is a quasi-monopoly on measuring equipment, scanning and imaging equipment, etc, etc

The reason we don't see an underlying decline in cost of services is because we have a patchwork system in place with the regulation laws that create bottlenecks in some areas while ignoring others.

This is the result of the fact that Medicare was supposed to be a limited and highly controlled program and we like to regulate health SYSTEM as opposed to health STANDARDS.

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Lalo, reread my statement - I'm "against proscribing advertising" - i.e. I think advertising should exist.

Rants against advertising remind me too much of Marxist Green political pamphlets out of Germany 25-30 years ago, sounding nice but in practice counterproductive, leading to those nice empty food shelves in the east.

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OK, it's clear now.

I just have to say that I'm really astonished that throughout the entire debate nobody dares to imagine that a visit to a doctor, who's using tools, shouldn't be THAT much more expensive than a service by a building contractor who's using tools, labor by the hour and expensive building materials.

This is obviously an exaggeration for effect, but my point is there is no valid reason for anybody to ever assume that the underlying costs of services are NORMAL and shouldn't be comparable to other highly skilled services.

The current healthcare debate deals entirely with expanding the entitlements and finding a way to pay for them. It has nothing to do with reforming a system.

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Well sure, doctor supply for one is heavily moderated to create scarcity in the face of demand. We have thousands of immigrant doctors with good training who can't practice, but they can drive taxis. On the other hand, doctor training is incredibly long. Either it's not necessary so we scale back the requirements or we have to have some moderate guarantee of good wages or we possibly lose many skilled professionals due to lack of proper incentive.

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Agree completely.

It's also expensive. A 4 year dentistry course at NYU costs at least $280,000 excluding room and board.

I had to visit an eye doctor two weeks ago for glaucoma tests and eyeglasses prescription. Basically, it's atropine drops, nerve scans and lots of peeking into my pupils.

Cost of that visit? $1,400

But unlike most "progressives" here, it is this cost that concerns me. Not the insurance premiums I have to pay to avoid full out-of-pocket outlay.

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And I agree with you that these costs and their control are of major importance in controlling healthcare costs. How do we control those costs without major government intervention?

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I don't you need to "control costs". It's not about more regulation for something that's already wrong at its core.

You need to regulate standards on one hand and then flood the market with more med schools, more doctors, more tech and pharma companies, shorter patent rights, on the other.

You need to have the same thing that happened in computer industry: single consistent national standard and regulation system, multiple players with strong anti-monopoly measures - to create the same competition that happened to desktop computers.

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National standard and regulation is absolutely required. I also agree with the need for more med schools/doctors/shorter patent life. An anti-monopoly attitude in the insurance sector seems like a reach without extreme regulation. Which brings us back to my question as to how do we foster all of this without major govt. intervention including an unrestricted public option.

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The only reason "it" will cost "more" is because we are taking the dumbest possible approach which is tha we are bowing and scraping to the paisitic insurance and pharmaceutical interests and keeping our rotten, far too expensive and underperforming system in place while also establishing an alternative "public option" that will almost surely be designed to fail if it even is included in the final legislation under discussion. Then, when the public option is structured so badly it cannot possibly work properly the very same parasites choking our families our businesses and the economy will point to it and exclaim: "See! We told you! Government run healthcare won't work!"

The solution is simple, obvious and straightforward. We need to abandon the current system and estalish a single payer system. Personally, I am for the simplest and most straightforward approach which is to support Rep. Conyers' Medicare for All bill.

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oleeb,

I'd like to tell you something about how your arguments about health care that I see you post here hit me, just so you know how counterproductive they might eventually be with some.

They hit me like cheerleading and agitprop along the lines of "If we believe it, it will be true! We will get a pony! If we get rid of health insurance companies, the pony will appear! We will just shut our ears about anything negative about any facts that contradict that, because then the pony won't appear."

I am fully for getting rid of health insurance companies, no question about it. (I happen to hate nearly all insurance companies, not just health insurance companies, but I do think health insurance companies are a special perversion and that their profit motive does not belong paired with an essential service that should be practiced as a profession and an art and not a science.) But to argue that "Medicare for all" is a simple straightforward "solution" strikes me as agitprop. A solution to what?

If we are talking about it being a solution to the rising health care costs problem, which this thread addresses, guess what? IT'S NOT! As a matter of fact, it can easily be argued that Medicare for over 65 group is what is causing a lot of our current health care costs problems, not that I am sure that is totally true, either. While it's bullshit that Social Security is in crisis and is a time bomb, most people who know something about it think Medicare IS in crisis and IS a time bomb as to our national budget.

The Gawande New Yorker article cited above is about a study in differences in Medicare costs, not in health care delivered by private health insurance companies.

Also, it's been pointed out to you that not all first world countries with universal coverage do it with a single payer. But you keep saying that every other country has single payer. Actually, quite a few countries don't have single payer and have kept costs significantly below ours. This dishonesty doesn't make me trust anything else you have to say.

Medicare is very EXPENSIVE right now. Current actual premiums for Medicare for those who don't fit the qualifications for receiving it in its subsidized form (subsidization paid for by by all of us with our FICA taxes) are MORE than the the price quoted in current debate for continuing with private insurance: $6,472 per one person per year without even including drug coverage. But at the same time, payments received by primary care physicians from Medicare are so low that many of them are opting out of it in recent years.

There's no two ways around it: Medicare in it's current form is not going to be a total "solution." It would only be a first step. There's no pony there. And some of us want to discuss that, rather than having to be on a cheerleading team saying: rah, rah, Medicare for all will solve all our problems. We have a very long way to go if we are to have a system like Canada's. Medicare for all would not do that, Medicare has serious problems.

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Like many smart people you are bogging down your own side with an overly pensive and detailed argument. It is a recipe for losing this fight.

The fact is the for profit healthcare system IS the problem without any doubt and the chief bad guys are the health insurance parasites and their allies. Medicare was doing fine without the Republicans destabilizing it (something the cowardly Democrats rolled over for), once again, in order to service the for profit health care parasites.

The only way to win the day on this issue is to defeat the bad actors and they are lead chiefly by the insurance parasites as we all know. The answer most certainly is some form of single payer. I repeat: some form of single payer and the fact is that every other industrialized country does have some form of single payer. There is no other cheaper, more efficient or realistic way to achieve a decent healthcare system for all our people. No "compromise" and no half measures will get the job done. As for the rising costs, they will be instantly contained and eventually brought under control by a single payer system which will determine, for the first time, what a reasonable cost really is instead of leaving it to "the market" which is a preposterous and inappropriate standard to be using for healthcare in any instance. We don't need to and in fact shouldn't get caught up in all the minutae that you seem to be fixated on. That is the losing path and not dissimilar to the approach being taken by the Congressional Democrats and Obama. First you have to win. Obama's approach, even if passed, is not a victory by any measure. All it is, is not losing. That is not good enough. First, we need to win the battle and that is for some form of single payer. Untile we face that and start dealing with health care from an honest point of view it's all a waste of time that will not lead to any notable improvements for our people.

And if it all sounds like agitprop to your well educated and refined ears, as well as that of others so what? Sometimes agitprop is also true. In this case there is far more truth and reaslism in the single payer position than in any other. The question that first must be addressed is how do we win and win in a way that is worth all the effort? Your way of a genteel and detailed winning of the debate is the way of the last 40 years and if we continue down that path the people lose. I respect where you are coming from but I'm tired of losing by taking that sort of approach. Our country can't afford losing anymore in order to sound more comprehensively intellectual. The real question is how many times will it take before most liberals and intellectuals realize this is a fight that must be won? If it has to be fought on terms that satisfy your personal taste for how these things should be done then be prepared to lose ad infinitum.

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Yes, I'm less I'm less interested in fighting and winning political battles with agitprop, and in punishing rip off insurance companies (many which deserve punishment, no doubt,) because I am much more interested in the "intellectual" issue of how to get actual good health care at a cost comparable to other countries many of which don't have single payer, and a couple of which do.

I haven't yet seen a reasonable argument that Medicare (unreformed) for all would do that.

I do see a lot of convincing arguments that another type of single payer system all together might do that.

It's common to use the argument that no one complains about Medicare. Well, no one complains about it because it's expensive fee-for-service that allows for exponential uncontrolled growth in all kinds of profit-making medical ventures.

For example, I know from personal research I had to do that there's a whole new category of private hospitals invented by Congress, LTAC, (long term acute care) invented at the behest of lobbyists for the investors in those services, invented in order to get Medicare dollars. They saw a niche where people were getting kicked out of ICU's, either by a real medical decision or when Medicare coverage ran out, and going to nursing homes, nursing homes which are not paid for by Medicare. Corporate interests in the health industry invented LTAC hospitals so they could get Medicare money to pay for more than it had been paying for before. Now I'm not saying that LTAC hospitals are necessarily bad, I'm saying the decision to have them get Medicare dollars was not one that was made according to what's best for us all, it was made by lobbyists interested in profiting from Medicare.

Fee for service has this problem: it leaves everything up to the consumer. Medicare is fee for service controlled, controlled by Congress and medical business special interest lobbyists. Medicare for all without sufficient reforms of it looks like a way to failure to me, promises something that won't deliver.

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Destor nails it! I've been asking this question for years!

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Destor's cool. So is Desidero. Unless you have to watch him eat.

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A comment thoroughly beneath you - especially since I gave up Pigs in a Blanket for breakfast just for your sake. I'm just leaving crumbs for the little people - for them it's like a Grande Bouffe.

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I must be having a reading comprehension problem (seriously, not sarcasm), because I cannot quite make out the arguments presented here:

So, just to be clear -- does someone on this thread think that the new healthcare system will cost more or about the same to operate as the current one does?

It will not. It will be less, and all figures including the CBO's are confirming this.

If that is not the case, are you arguing that it should cost even less, that the transition costs should not run so high or that there should be no transition costs at all?

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We hear of constantly rising medical costs for 20 years. Let me offer some anecdotal discussion: When I talk with people about when they perceived medical costs being an issue, almost everyone says about 5 years ago. That's my experience also. Things really started getting out of control sometime around 2004 or so. I'm talking about people who were in stable jobs, and simply noticing the premiums they were paying and attendant drug costs.

My question is simple: what was going on in 2004 where costs started escalating non-linearly?


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