Unbiased Analysis of Today's Healthcare Issues
“Authors of economics books, essays, articles, and political platforms demand interventionist measures before they are taken, but once they have been imposed no one likes them. Then everyone—usually even the authorities responsible for them—call them insufficient and unsatisfactory. Generally the demand then arises for the replacement of unsatisfactory interventions by other, more suitable measures. And…
Conventional wisdom holds that the U.S. has a free market for health insurance and Europe relies on a state-run, socialist health care system. The U.S. ‘free market’ for health insurance, however, is in fact strictly regulated. States exert significant authority over what benefits plans can offer and what premiums they charge. Consider the following evidence…
To what standard should the FDA hold new drugs? The FDA has a number of choices. Drugs companies could be required to prove that the drugs they make: Do no harm. Are more effective than placebos Are more effective than existing drugs Are more cost-effective than existing drugs, or Are both more effective and more…
Many states have certificate of need (CON) laws which restrict providers supply for certain procedures. A paper presented by Vivan Ho at AcademyHealth claimed that there were 37 states with a CON law for at least one procedure. Following up earlier research which found that CON laws decreased quality, Dr. Ho found that dropping CON…
California think they have found the answer. “The bill in question is AB 52, introduced by Assemblyman Mike Feuer (D-Los Angeles). It would prevent health insurance premium increases from going into effect without the prior approval of the commissioner of insurance or the director of the Department of Managed Health Care, who share jurisdiction over…
How occupational licensing affects the cost of goods and services: “After Hurricane Katrina leveled the pine forest that had been their sole source of income, Benedictine monks in Louisiana wanted to support themselves by making and selling coffins. Unfortunately for the monks, in Louisiana only a licensed undertaker can sell coffins. It’s the law, enforced…
The Consumer’s Union used Medicare.gov to show that many people could save $3,500-$5,000 by switching to generics. Why don’t more people do so? One reason is the long delays for FDA approval of generics. The FDA’s Office of Generic Drugs is understaffed and thus generic drug approvals takes much longer than it should. Brand name…
The Economist notes that counterfeit drugs are a growing problem. “Counterfeit drugs can kill. Many are shoddily made, containing the wrong dose of the active ingredient. Taking them instead of the real thing can turn a treatable disease into a fatal one. It can also foster drug resistance among germs.” Do patents cause and increase…
An energy drink called Cocaine has received a lot of press. Texas has barred the sale of the drink in the state. The FDA made the manufacturers of Cocaine change the label so it looked less like white powder. To comply with FDA directives, the cans now declare “This product is not intended to be…
Conventional wisdom holds that economists advocate for reducing regulation on most policy arenas. Regulation imposes costs and businesses and is often ineffective. Further, as technology and market conditions change, regulations which were originally welfare enhancing can now become archane. The public generally views the FDA’s pre-approval as a worthwhile endeavor. The goal of FDA pre-approval…