By Arnold Kling
America's future health care problems stem mostly from a very good luck: smooth medication can do even more at the present time than some time past. the matter is tips on how to pay for it. In effortless to appreciate prose, MIT-trained economist Arnold Kling explains higher methods of financing wellbeing and fitness care through depending much less on executive and extra on inner most reductions and assurance. A must-read for overall healthiness care reformers.
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Additional info for Crisis of Abundance: Rethinking How We Pay for Health Care
However, these would not be identical single-payer systems. The systems that go along with each narrative are described in Table 2-3. The doctor-friendly approach to a single-payer health care system would be based on a fee-for-service approach, where suppliers determine the normal fee. Government would not be involved in deciding which services are appropriate for payment or which price is set for 28 Three Health Care Narratives Table 2-3 DIFFERENT EXPLANATIONS OF AMERICA’S HEALTH CARE FINANCING ‘‘CRISIS’’ AND DIFFERENT APPROACHES TO SINGLEPAYER HEALTH CARE Narrative Single-Payer Approach Description Insurance failure Doctor-friendly Reimburses doctors at usual rates Supplier overpricing Doctor-hostile Reimburses doctors at lower rates Premium medicine Doctor-limiting Rations the supply and/or use of health care providers doctors.
Then the benefit of treatment is 10 additional years of life. If one year of life is worth $100,000, then the value of this treatment is $1 million. In decisions where life is not at stake, the dollar value must be assigned to relief from pain, discomfort, or disability. Thus, if someone has hay fever allergies, the value of treatment is the value that the person would give not to suffer from severe sneezing, itching eyes, and other forms of discomfort. Another factor to consider is probability.
Physicians prefer the doctor-friendly model. However, to restrain costs, government tries to reimburse doctors at lower rates, 29 CRISIS OF ABUNDANCE: RETHINKING HOW WE PAY FOR HEALTH CARE with the result that some doctors refuse to handle Medicare patients. By setting conditions for reimbursement, government also sets limits on the discretion of physicians. Because I view premium medicine as the most plausible narrative, my prediction would be that neither the doctor-friendly nor doctorhostile approaches to single-payer health care would work.
Crisis of Abundance: Rethinking How We Pay for Health Care by Arnold Kling