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Lakeshore
An author of no particular popularity

Jay Lake
Date: 2007-12-06 01:05
Subject: [politics] Interim report on the healthcare thread
Security: Public
Location:Omaha
Mood:awake at a stupid hour
Music:the heater humming
Tags:healthcare, personal, politics
The healthcare feedback has been very interesting, both in the public comments and the moderated thread. There's a bunch of points I could cherrypick to take note of, and I'll cite a couple, but perspectives on healthcare from this reading audience seem to boil down to a few basic things. I'm going to lay them out here without much editorializing. (That will probably occur, just in a different post.)

Points which made me think about things I hadn't carefully considered:

  • Health insurance as it's generally understood in the US today is actually a combination of pooled buying (for routine, non-emergency/non-catastrophic expenses) and risk-based insurance (for emergency/catastrophic expenses). Contrast health insurance, which usually pays for annual physicals, with automobile insurance, which doesn't pay for oil changes or new tires. The significance of this observation to me is not about the value of preventative medicine (this was already clear), but rather that the term "insurance" is itself something of a misnomer.


  • Rationing of healthcare takes place now through the economic mechanisms that select who has access to health insurance. This rationing is a result of passive, rather than active, social policy, in that it is a known and well-understood consequence of decisions in labor law and the job market which themselves are not directly aimed at managing access to healthcare via the funding mechanism of health insurance.


Points which I think are worth considering regardless of where you stand on public vs. private funding of healthcare:

  • The issue isn't access to health insurance. The issue is access to healthcare delivery. In our general political discourse, this has been framed almost entirely as a health insurance problem, but that itself is a social assumption.


  • Our largest public provider of health insurance, Medicare, has admin costs which run about 1/4 the load of market-based insurance. A lot of people of all political stripes are very suspicious of government involvement in health care finance, but Medicare, like the private non-profits, doesn't have the fiduciary responsibilities of return-on-capital which private for-profits do, nor the structural incentive to ration healthcare.


  • End of life care is very, very expensive, with poor outcomes. This skews healthcare spending badly. We view death as a medical failure in virtually all circumstances, when in fact it is a natural, perhaps the most natural, part of life. (I can say that as a matter of philosophical conviction, but if my loved one were in the ICU, I don't imagine for a moment that I'd be the least bit interested in a "common good" argument that they shouldn't have every conceivable medical effort expended on their behalf — it's a profound paradox.)


  • Spending on Medicare/Medicaid (ie, public financing of healthcare delivery) exceeds $500 billion per year now. Spending on uninsured patients, including lost compensation to doctors and hospitals, is less than $50 billion per year now.


Dividing lines in people's viewpoints:

  • A number of people seem to be unaware of the difference between "single payer" and "single provider" systems. The term "socialized medicine", which is a highly perjorative label in American discourse, lumps the two together in the minds of many folks. Canada has a single payer system, the UK has a single provider system, and they are very different from each other. If more Americans understood this distinction, the foundational issues surrounding our national argument about healthcare finance and delivery would be much clearer.


  • People seem very afraid of the kind of healthcare rationing which so-called "socialized medicine" will bring. Yet the decline in classic indemnity insurance in favor of HMOs, PPOs and similar managed care plans has introduced healthcare rationing through market forces. If you have a good plan (ie, well funded, high premiums), you have ready access to medical services. If you have a basic plan, you have gatekeeper physicans and long waits.


  • The most basic question seems to be whether you view healthcare as a right or a privilege. From a classically conservative viewpoint, it's not enumerated in the Constitution as a right. From a free-market viewpoint, healthcare is commodity to be purchased and consumed like any other commodity. From a progressive viewpoint, healthcare is a basic human need on a par with food and shelter.


A few data points on my perspective

  • I'm one of those people tied to traditional employment by the need for insurance as a statutory benefit. Private market insurance for my family is very difficult for me to get and very expensive and prone to sudden cancellation due to pre-existing conditions. (I paid $1,400 a month back in 2002, the last time I had to buy it that way.) I'm completely trapped in the current system, and highly vulnerable to any serious disruptions of it. Luckily I'm trapped at a high enough level in the workforce that I can live a comfortable life and make a wide array of personal choices, but, for example, I will probably never be a full time writer, even if my books come to do phenomenally well.


  • During the course of this year, I went on, then back off, a high deductible insurance plan. High deductible plans are meant to separate routine costs from catastrophic costs, with the consumer being presumed to become more responsible in their medical choices. I lost this bet badly. Right after I irrevocably committed to the plan (due to workplace enrollment windows), Mother of the Child had a suspected heart attack. Though the initial ER admission and hospital stay were covered by my old PPO, by March of this year, I'd burned through my entire, very substantial deductible in her follow-up costs. I was out $4,000. Then my employer was bought out by another company and all our plans were reset. the_child had an ER visit four days after I switched to a PPO. My out of pocket costs for that are substantial — I will be out another $2,000 at least if the current denials from the PPO are not overturned on my appeal. (Because she was treated and released without significant diagnosis, they are viewing the ambulance transport as a frivolous expense — this for a child with a head injury who was nonverbal and unresponsive at the time of transport.) So as someone with good insurance, I'm probably going to be out of pocket $6,000 this year. That's been pretty damned stressful as it is. If I were earning an average US income, let alone something near minimum wage, that would have created profound financial distress. I was not irresponsible in my medical choices. Neither of those expenses (MotC's heart problems or the_child's bicycling accident) were a result of poor medical decision making or poor lifestyle choices on my part or theirs, I keep myself and my family well covered under the current system, and I'm still taking that big a hit.


  • As virtually anyone who reads this blog knows, I am a strong liberal-progressive. I have a very broad view of what constitutes human rights, especially in a society as affluent as ours. As a nation, it seems obvious to me that we can readily afford decent healthcare for everyone. As a society, it seems obvious to me that we lack the political and social will to deliver that decent healthcare for everyone.


There's lots more good stuff back in the comment thread here if you find this interesting.
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John
User: djonn
Date: 2007-12-06 10:29 (UTC)
Subject: (no subject)
Er, all three of the links point back to the original un-moderated discussion thread....

And a handful of further observations:

Medicare's only one of the three big federal gatekeeper bureaucracies, and the other two do have substantial wait/denial issues. The Oregonian just ran a big feature on the Social Security disability system, and then there's the VA, which is very good for some things and backlogged out the wazoo for others. Given the funding pressures on a prospective universal-coverage bureaucracy, I'd bet on such a bureaucracy bearing greater resemblance to the SS disability engine than to the Medicare engine.

Medicare also generates some interesting market-driven fallout: certain Medicare benefits (the most visible being powered wheelchairs & diabetes or asthma meds) generate enough payout that large for-profit businesses have sprung up purely because it pays them to sign as many people as they can up for that particular benefit, and then charge the government rather than the patients for the service. The issue of whether this is a Good Thing or not is open to disagreement, but it's definitely an artifact of the way Medicare has evolved.

The original "Oregon Health Plan" as developed by state Senator/later Governor John Kitzhaber -- an insurance-based system funded mostly by federal Medicaid money once a slew of waivers had been pushed (with great difficulty) through Congress -- was very much a rationed-care model, yet didn't get the socialized medicine stigma. It also actually worked, more or less, for a little while, but over time funding eroded and access became more complex, to the extent that it's not really what it was meant to be anymore.
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Jay Lake
User: jaylake
Date: 2007-12-06 10:40 (UTC)
Subject: (no subject)
Oops...fixed the link. Thanks.

As for the OHP, that was collapsing about the time I first moved to Oregon, apparently due to a conservative attack on its funding base.
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User: dirkcjelli
Date: 2007-12-06 14:24 (UTC)
Subject: (no subject)
I really don't understand why you don't think we can accomplish what dozens of other nations have done.

You don't think this profit-driven beast has a bureaucracy built in?
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chris_gerrib
User: chris_gerrib
Date: 2007-12-06 20:06 (UTC)
Subject: (no subject)
Well, the VA system is really only supposed to deal with "service-related" problems. So, although I am a veteran, the first part of any process for me to get VA benefits would be to prove that my illness is related to my service.

I think the Social Security disability system is similar, in that they don't want just anybody on the system, only those that truly can't work.
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lt260: b&w FF
User: lt260
Date: 2007-12-06 10:31 (UTC)
Subject: (no subject)
Keyword:b&w FF
I’ve been reading most of the comments and I have yet to see anything about one part of health care that is universal and is socialized in many parts of the USA: pre-hospital emergency care brought to you by your friendly local EMTs. Whether it a fire district, fire department, or ambulance corps that is responding, our services are paid for by taxes. There are some fees for transportation in some places, but the initial response is free of charge. Even if you receive a bill, it is after the fact and not before. I do not know of any place in this country where emergency personnel would refuse services because someone did have any insurance, proper insurance, or otherwise were not able to pay.

What we have here, basically, is a niche in the country’s system of healthcare that is paid by taxes and that works just great. Rich or poor, a human being in this country gets the same care from us.

This begs the question: if we can make it work on this level, there should be no reason why it can’t work on any level. I say “should be” instead of “is” because the only roadblock I can fathom is simply the public will to put it in place. I suppose that there are conservatives who would say that this is a waste of their precious tax dollar. I cannot think of any call where we were told to go away because firefighters are a waste of tax funds. If anything, people would like to see us do more not less.

This does not mean that we do not have difficulties funding our activities. Fire levies are turned down every election. However, any time it becomes critical, the public becomes motivated at the thought of not having us around to respond and the community comes together to support us.

This same system could be used for healthcare. It is possible. It is a very good example of how government can and does work.
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Jay Lake
User: jaylake
Date: 2007-12-06 10:42 (UTC)
Subject: (no subject)
tillyjane makes the same point about government. People complain about waste and bureaucracies, but government is firemen and EMTs and bridges and public health nurses and school playgrounds and libraries and a whole lot of other things that even rabid libertarians and radical Movement Conservatives would have trouble living without. Government works well, every day, to everyone's benefit.

The "hate the government" meme, at least in its contemporary form, began with Ronald Reagan insofar as I can tell. It was wrong then, and it's wrong now.
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John
User: djonn
Date: 2007-12-06 11:00 (UTC)
Subject: (no subject)
The thing is, most of the government services people (and more specifically, voters) support most reliably are those services that are administered and provided by local governments -- libraries, schools, police & fire services. Voters also more reliably support state-funded services -- highways, education -- when those services are provided through earmarked and well-managed revenue streams.

For example, K-12 schools work well when they're governed by local school districts -- and certain specialized K-12 programs can work well when delivered by larger regional "education service districts". But the nature of bureaucracy imposes limits on how big a school district can get and still work well (the largest Oregon districts are beneath the ceiling; LA Unified, where my brother and his wife both teach, may be above it).

Government may well be able to do a good job of delivering health care -- but I'd bet on local/state government doing a better job at that function than the federal bureaucracy.
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lt260
User: lt260
Date: 2007-12-06 11:08 (UTC)
Subject: (no subject)
How come Republicans crow so much about no free lunches but cannot put it into practice? What are they conserving anyway? If it is their own personal wealth then they are penny-wise and dollar-stupid. Why not pay expenses before they cost an arm and a leg?

Hate the government? They should read the constitution and find out whom they are foaming at the mouth about. I'll give them a clue: it's the first three words. Sigh. Pogo had it right.

PS: If you want some really good witnesses and paperwork for your case about The Child, check with the responding fire department. We are the ones who determine how a patient is transported. Leastwise, we make a determination and try our best to convince the parties involved agree to it. If they made a rule-out of decreased level of consciousness then that would automatically eliminate many modes of transportation, including POV (personally owned vehicle). The FD protocols come straight down from an MPD (medical program director) who is generally one of the leading ER physicians in the area.
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(no subject) - (Anonymous)
Jay Lake
User: jaylake
Date: 2007-12-12 23:01 (UTC)
Subject: (no subject)
Well, sure. There's bloat in any human institution. The Catholic Church. Publicly owned companies. Cub scout troops. That's not a problem specific to government, let alone unique to it. As a society, we don't deal with bloat at Citibank or Boeing by strangling the company in the bathtub.

As for the fire brigade, it's definitely in my interest to have my neighbor's house fire put out before it spreads to mine. Not to mention everyone else in the neighborhood. Conservatives love to pretend the commons doesn't matter, but they're either being idiots or disingenous when they do.
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User: ex_chrisbil
Date: 2007-12-06 13:35 (UTC)
Subject: (no subject)
The most telling and poignant point, in my opinion, and in all the other cases I've read about regarding US healthcare, is that you, as someone with good insurance, are still out of pocket to a large degree. (sorry about all the commas. I like them. They are free!) Also, that is not due to a particularly long term illness. It's in this most simple form that I see the US system as failing. Many other points are valid, but I don't know why the argument has to go that far. People in America, to an extent, cannot afford to keep healthy. Now, whether this is because of advancements in technology that have made costs higher (and if so, where does the argument for drawing the line there come in...) or whether it's because pharmaceutical companies are jacking up the prices, I don't know... but it's wrong.

Meh, I'm not particularly dignified or smart in my discussions about the state of US healthcare, but that's because I don't feel the need to be. It isn't working for the people, unless they are at the top of the scale.
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User: ex_chrisbil
Date: 2007-12-06 13:36 (UTC)
Subject: (no subject)
Keyword:Sly
Actually, I should mention that that's in terms of the "is it broken or is it the best it can be" discussion, not the "how can we fix it" discussion, which obviously requires smart discussion.
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User: (Anonymous)
Date: 2007-12-06 15:16 (UTC)
Subject: (no subject)
There's one other observation about healthcare that nobody is making:

We pay substantial costs for not having universal access to healthcare; they're just not fully defined within GAAP, so nobody is quantifying them in the first place (let alone paying attention to them). Here are a few examples:

* Back when I was in-house counsel, we had a situation in which my secretary/personal assistant's "preexisting" pregnancy was not covered. In an effort to economize, she treated her "flu-like symptoms" that persisted for three weeks as "flu" instead of seeing a doctor, out of (justified) fear that a doctor visit would be "pregnancy-related" and therefore uncovered. This resulted in two distinct sets of losses: When it became unbearable to her and she had to quit, there was a distinct productivity loss. And then there's the medical costs for life of the disabled child that could have been prevented.

* An obvious one that nobody likes to talk about: Joe visits his grandmother in the hospital. A couple of days later, he develops a rash... but Joe has no coverage, so he doesn't seek attention, and can't afford to take a few unpaid sick days. Thus, Joe continues going to work at the meat-packing plant. You can fill in the blanks from here, right?

* And finally, consider this: Somebody is, somewhere, paying the costs of inadequate care. It results in lost productivity, complications, people losing jobs and educational opportunities, dogs and cats living together outside of wedlock... In short, it results in all of the ills that a single-payer system would allegedly result in, with the dubious advantage that there isn't one "villain" at whom we can point a Finger of Blametm.

In summary, a single-payer system just consolidates costs that already exist and makes them explicit. Gee, isn't that the first step in a coherent management review to determine how a company can reduce costs?

— CEP
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User: dirkcjelli
Date: 2007-12-06 19:38 (UTC)
Subject: (no subject)
American College of Physicians Endorse Single-Payer

(2nd largest group of Physicians in USA)
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Doctor Pipe
User: dr_pipe
Date: 2007-12-06 20:19 (UTC)
Subject: (no subject)
the best sum up of what I agree with I've read:

http://www.nybooks.com/articles/18802
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Menolly
User: nolly
Date: 2007-12-06 23:24 (UTC)
Subject: (no subject)
I will be out well over $6K in copays alone this year, and that's without any catastrophic events. I have insurance that's mostly decent, but I hit a weak spot in the plan last year. I have enough income on paper that I don't qualify for any of the assistance programs, even though I have a SoCal mortgage eating a good chunk of my paychecks.

On the other hand, with the delays that are common in both the British and Canadian systems, I might have lost too much functionality to keep working by the time I was diagnosed and given the too-expensive drugs.
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