August 2009

You are currently browsing the monthly archive for August 2009.

Is Obamacare going down in flames? Is Sarah Palin’s “Death Panel” comment the culprit? Is the government going to start killing its own citizens?

In Sarah Palin’s Facebook post, she explains her concerns by quoting from section 1223 of HR 3200:

Section 1233 authorizes advanced care planning consultations for senior citizens on Medicare every five years, and more often “if there is a significant change in the health condition of the individual … or upon admission to a skilled nursing facility, a long-term care facility… or a hospice program.” [3] During those consultations, practitioners must explain “the continuum of end-of-life services and supports available, including palliative care and hospice,” and the government benefits available to pay for such services.

How does one interpret this Section? Some extremists have claimed that this section will encourage or require euthanasia among sick patients. If you support ObamaCare, you likely think of these consultations will proceed as follows: a benevolent nurse will advice patients of their health care outcomes and may recommend care best suited for the patient. If you do not support ObamaCare, then you may still believe that these nurses are good hearted, but pressure from their superiors to cut cost may cause these consultations to become distorted. Practitioners may push for more hospice care and less invasive medical treatment–not because it is in the patients best interest–simply to save costs.

The truth is, no one knows exactly how these consultations will play out in reality. Some pracitioners may feel pressured to recommend less invasive care to save money and some may not. However, believing that this type of rationing does not occur in the private sector is incorrect. Let us look at another Sarah Palin statement:

“The America I know and love is not one in which my parents or my baby with Down Syndrome will have to stand in front of Obama’s ‘death panel’ so his bureaucrats can decide, based on a subjective judgment of their ‘level of productivity in society,’ whether they are worthy of health care. Such a system is downright evil.”

Palin fears that government rationing will deny care to certain groups. But as Robert Reich understands, health care is already rationed. In the private sector, different insurance companies cover different treatments. When an insurance company decides not to cover some type of end-of-live medical treatment, these private sector administrators can be considered just as much of a death panel as in Obama’s public sector plan.

We need politicians to now to offer real solutions to the health care problems in America. Pandering to American’s fears by using terms such as “death panel” and “rationing” will likely help the Republicans win votes, but it will not improve health care. If Republicans were truly opposed to any government-run healthcare, then their hyperbole could be seen a ploy to end government-run healthcare. However, very few politicians (even Republicans) endorse ending Medicare. Even the supposed anti-government George W. Bush enlarged Medicare by added prescription drug coverage (Part D).  Thus, I see lots of criticism, but few proposals for improvement.

Arnold Kling makes a provocative case for real reform: end Medicare and institute vouchers. Kling proposes that insurance be deregulated and Medicare ended. Won’t individuals with pre-existing conditions pay more for health insurance? Yes. However, in order to make this proposal fair, Kling would make the voucers conditional. The amount of the vouchers would be “based on need. Need would depend on income and pre-existing conditions.” With more people paying for their own health care and the government leveling the playing field, a fairer, more efficient system would emerge. For more on vouchers, see my post on vouchers in the U.S., as well as vouchers in Chile.

Tags: , , ,

I just recently returned from my honeymoon in Tokyo, Japan and Bali, Indonesia.  One thing anyone visitng Tokyo will notice is that it is very clean .  Further, Japan has the most advanced toilets in the world.  On the other hand, most Balinese burn their trash.  Why is Tokyo so clean when other world cities are not? 

Let us assume that the average cleanliness of a city equals:

  • C=100-L/S

The variables above represent (C)leanliness, (L)ittering and street (S)weeping.  The maximum cleanliness level is 100. We can see that there are two ways that a society can have clean streets. 

  1. Reduce littering.  It is possible that different societies have different preferences for the amount of littering they will do.  Japan is a fairly formal culture individuals may go out of their way not to offend anyone by littering; or individuals may just have a natural affinity for cleanliness.
  2. Increase street sweeping frequency.  For any given level of littering, more frequent street sweeping will result in a cleaner society.

If a poilcy maker has a goal to increase cleanliness in an area, how best should they accomplish this?  Let assume the following cost function:

  • c=f(L0-L)+g(S)

Decreasing littering involves some cost.  Likely, the cost of decreasing littering exhibits decreasing returns.  Similarly, there are decreasing returns from increased street sweeping.  Everyone knows that vaccuuming your house twice per week doesn’t quite make a room twice as clean as vaccuuming only once per week would have. 

Thus, we are left with the old dilemma of prevention versus treatment.  “Preventing” littering involves educating individuals and convincing them not to litter in the first place.  “Treating” littering simply involves cleaning up the littering after it takes place.  I predict that preventing littering is a more cost effective alternative for all but the lowest cleanliness levels.

Regardless of how the Japanese do it, Japan is clean.

Tags: , ,

Currently, only 1.5% of U.S. hospitals have electronic records systems covering all their clinical units; an additional 7.6% have systems in at least one such hospital unit (Jha et al. 2009).  This low EMR usage rate is astounding, especially since the RAND Corporation found that using EMR could save up to $77 billion annually.  The Wilson Quarterly notes that the Obama administration has promised to invest $19 billion in order to institute electronic medical records in the U.S.  Problem solved?

Not so fast.  In a world where technology changes at warp speed will government-certified EMR systems soon become obsolete.  Will hospitals decide to go for the HDVD version of EMR when a “BlueRay” EMR will emerge victorious?  Instead, a paper by Mandl and Kohane use the Apple iPhone as a more flexible model for an EMR platform.  An EMR that would allow additional “apps” would allow for a more flexible EMR standard.  However, balancing this flexibility with patient privacy needs and a common EMR language for all hospitals and clinics remains a significant challenge.

Tags:

Today marks my last blog post as Jason Shafrin, the single, avant garde Healthcare Economist.  Yesterday I was lucky enough to marry a beautiful, intelligent, creative woman that will make me happy the rest of my life.  We are heading off on a 12 day honeymoon on Tuesday.  Blog posting will resume on Monday, August 17.  Upon my return, the new lead editor will be: Jason Shafrin, the married, avant garde Healthcare Economist.

Tags:

The New Scientist reports that “Sixty-one per cent of American adults seek out health advice online.”  Looking for medical advice online is okay as long as you don’t rely on a unreliable sites.  For instance, who would trust a user generated site like Wikipedia?  The answer to this question, is doctors.

According to a report in April by US healthcare consultancy Manhattan Research, fifty percent of U.S. doctors turn to Wikipedia for medical information.

Tags:

Newer entries »