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Re:Sneaky deals are keeping cheaper generic medicines off th... by keenmaster on Saturday June 29, 2019 @07:55PM (#20315584)
Single-payer healthcare is the answer. Period. If all Americans were in a single pool negotiating for drugs and healthcare, prices would plummet. It worked in Europe and it’ll work here. We are spending somewhere between 150% and 200% of what we should be on healthcare on a national level. We don’t get better outcomes either. So the harsh truth is that the whole industry needs to take a pay cut. That includes doctors, who actually make more than they should be in a well-lubricated market economy. Make no mistake, the healthcare market is colossally broken.

Zero price transparency combined with high price insensitivity (due to extremely high value of life) and no practical substitute services (“protest” healthcare and go uninsured....at your peril) is a toxic combination. It guarantees that people are fleeced for every penny they could pay. Almost no other industry in America works in that way.

Imagine a grocery store with no listed prices. When you roll up to the register and ask for the price, the employees are baffled. How dare you question the value of those who provide you sustenance. Do you even know how many years it took to optimize our supply chain so that you can have organic chicken and avocados? Our executives have to pay off their MBA debt somehow. They then inform you that the price of your basket is probably somewhere between $100-$1000, and that it’s really up to your grocery insurance provider. You call the insurance company, which then ask for the chicken code, avocado code, toilet paper code, etc... 2 hours later, they say they can give you an answer on how much your groceries will take from your deductible, but it’s going to take a week. They can quote the same prices for a couple other in-network grocery stores too, but you have a choice to make. Leave your groceries for today and wait a week for an answer, or buy your damn groceries like 99.9% of other people and get on with your life. You decide to wait. You find out that all the prices are exorbitant, but the grocery store that’s 2 hours away would only charge $300 as opposed to $500. Alas, it’s not even worth taking off work for that.

If that sounds utterly dystopian, that’s healthcare in America today. It’s a game of name-your-price for providers. Insurance companies are in on it too. They want prices to be higher because high total spending results in higher insurance premiums. Businesses mostly shrug at the problem because of tax subsidies and because they want employees to fear losing their insurance along with their job.

Americans must be unapologetic to medical organizations complaining about single-payer (“We’ll literally go out of business! We’ll close rural hospitals! Insurance workers will lose their jobs! Long socialist wait times! Government death panels!”). They want to keep the status quo at the expense of American families. For that reason, I assign close to no value to what healthcare insiders have to say about solving the spending problem. Lastly, consider this: American employees take home less of their paycheck than employees in all other developed nations except Netherlands. Note that this takes into consideration the portion of your premiums paid by your employer, which otherwise would have been paid to you in income. That’s why tax increases seem so unfathomable in the U.S. The healthcare industry is parasitically sucking out all the slack. Imagine if all that economic rent went to education and infrastructure instead.

Re:Sneaky deals are keeping cheaper generic medicines off th... by throwaway34241 on Saturday June 29, 2019 @11:02PM (#20316084)
I agree with you on the insanity of the current system, but I have two problems that prevent me from believing that single payer is the simple answer to our health care cost problem:

1) "Europe" is not single payer, England is while the two largest EU countries, Germany and France, are not.

2) Medicare is already an enormous single payer system, covering the demographic that consumes the most health care services, and does not have costs anywhere in line with Europe.

So, I think copying Europe would be reasonable, but that maybe it would be better to draw inspiration from one of the non-single-payer systems instead. The results don't seem to be any worse and it seems a bit safer to have more choices.

Re:Sneaky deals are keeping cheaper generic medicines off th... by dragonwriter on Sunday June 30, 2019 @06:56AM (#20317585)
> Medicare is already an enormous single payer system

No, it's not. It's a multipayer component (it involves both federal government and non-federal — both private and state government — payers, the latter, private specifically, exclusively for Part D, and both together in an arrangement loosely similar to the ACA with a default public option for the combination of Parts A-C) of a multipayer system, with the government part forbidden to use it's buying power to negotiate drug prices but instead required to accept prices set by other participants in private markets.

Re:Sneaky deals are keeping cheaper generic medicines off th... by keenmaster on Saturday June 29, 2019 @11:22PM (#20316144)
Medicare sets reimbursement rates at around 80% of what insurance companies pay. The government couldn’t go lower because Medicare patients are elderly. Doctors simply would not take Medicare patients if they got significantly less than 80% per procedure (on average) because they take more time and resources than the average patient. If the pool included younger and healthier patients (most of the rest of America) its cost basis would be lower than Medicare.

Additionally, I’m aware that there are different gradations of government healthcare in Europe. All of them would be better than the current system, though I’m a fan of single-payer. I was just simplifying.

Re:Sneaky deals are keeping cheaper generic medicines off th... by throwaway34241 on Sunday June 30, 2019 @12:57AM (#20316430)
Even if you can save 20% on younger people (by paying doctors/hospitals 20% less) that's still a long way away from bringing costs in line with Europe. Single payer doesn't sound like a crazy idea to me, I'm just skeptical that it will necessarily solve the cost problem. A single payer system that is very expensive and continually increasing seems like a real possibility to me.

I guess you could achieve cost savings by cutting reimbursement rates even further if you prohibit any alternatives. Hospitals can and do go bankrupt but it seems likely that physician salaries could also be cut. I'm sure this will drive many doctors that were borderline into retirement but I guess we're facing a physician shortage anyway.

I think there's a number of other things we could do to contain health care costs. We could expand the role of nurses and physician assistants (possibly with the aid of computer diagnostic systems). We could increase the number of doctors produced (which will in general lower salaries). We could subsidize medical education more, so doctors graduate with less debt, in exchange for accepting a lower salary later. We could have better conversations around end-of-life care, since many patients choose treatment plans that doctors would not chose for themselves, but might not if things were explained better. We could have official guidelines to establish when certain tests are necessary using evidence-based medicine, to limit thoughtless CYA testing for liability purposes if it isn't medically warranted.

So, my feelings on single payer are tied to whether it will make it more or less likely that we can explore these things. Given the current state of our political discourse I'm not encouraged.

Re:Sneaky deals are keeping cheaper generic medicines off th... by keenmaster on Sunday June 30, 2019 @01:48AM (#20316583)
“The AMA controls state boards of licensing, limiting the number of physicians in each state and preventing competitors from treating patients. The United States has 50 percent fewer practicing physicians per capita than Sweden or Germany. Unsurprisingly, US doctors also work fewer hours while earning much higher salaries.“

https://fee.org/articles/the-medical-cartel-is-keeping-healt...

We absolutely need more physicians. Med school should be cheaper and shorter in duration, but the AMA has been fixing the supply of doctors like a cartel in the name of “quality.” They’re defending the economic moat for current physicians by using a false front, nothing more.

Also, people started believing that end-of-life care is a problem in the U.S. partly because of misleading statistics. Let’s say your grandma is 75 and has complications due to pneumonia. The situation spirals out of control and she becomes a really costly patient. However, she has a reasonable chance of living to 85, giving you 10 more (quite valuable) years with her. No one will argue that we should give up on her. However, if she dies after all that expense, she will feed that stupid statistic about X% of Medicare spending in the last X months/years. Many people die when they have a reasonable probability of living. There are edge cases, like people that somehow enter a catatonic state or get some rare disease, but they’re overblown. Lastly, there is a subgroup of people that you just can’t “control costs” on, like Alzheimer’s patients. What kind of sick society would give up on them?

End-of-life care is a red herring in the U.S. healthcare debate, as is overconsumption of diagnostic screening. It is certainly true that America has a culture of screening but 1. MRIs shouldn’t cost $1500, so its hard to fairly compare the magnitude vs. Europe where the healthcare system isn’t broken 2. Excessively high treatment costs are so much more of a problem that this is a small factor in comparison 3. There are benefits to screening which obviously net out the cost to some degree. Screening really shouldn’t feature much in the debate at all in my opinion, nor should healthcare consumption levels for that matter. For some perspective, a study estimated that $45 billion is spent on “defensive medicine” meant to avoid lawsuits out of the $2.3 trillion spent on healthcare in 2008. However, if you ask some industry insiders why healthcare costs are so high, they might quickly inform you of defensive medicine and medical liability.

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3048809/

Re:Sneaky deals are keeping cheaper generic medicines off th... by throwaway34241 on Sunday June 30, 2019 @04:14AM (#20317024)
> United States has 50 percent fewer practicing physicians per capita than Sweden or Germany. Unsurprisingly, US doctors also work fewer hours while earning much higher salaries.

There's no citation, but I actually find the part about the hours to be extremely surprising if there are half as many of them doing the same work. Do Germans consume less than half as much medical care? US doctors don't work particularly short hours (even after residency), so it's very surprising if Germans work more considering they usually get much more vacation.

> the AMA has been fixing the supply of doctors

As far as I am aware, the supply of doctors in the US is determined by the number of Medicare-funded residency slots, which is set by Congress.

> No one will argue that we should give up on her. > What kind of sick society would give up on them?

No one would argue that for your specific examples, but with things like end stage cancer it can be more tricky. Part of the problem is that it is too often framed around "giving up" when it comes to aggressive interventions that are unlikely to help. But doctors who see the system from the inside would generally not choose that path for themselves, for reasons totally unrelated to cost. Too aggressive interventions usually don't make people live longer (they often die sooner!) and can really degrade any remaining quality of life. Atul Gawande wrote a book about it [1] (interestingly, he's also one of the authors of the paper you cited).

Excessive testing probably isn't purely a defensive medicine thing. I don't have a citation, but apparently when the medical group ordering the tests has a financial interest in the testing center, hugely more testing is done. And of course when the guidelines are unclear it's easier to default to just ordering things, it doesn't cost the doctor anything. There's another article (again by Atul) that touches on it [2].

It's interesting, if you talk to doctors (in a non-professional setting) they'll generally tell you their profession is getting worse. That they're more and more overworked with no change in pay. And if you look at the statistics, physician pay hasn't gone anywhere while health care costs have skyrocketed. [3]

[1] https://www.amazon.com/Being-Mortal-Medicine-What-Matters/dp..., https://www.youtube.com/watch?v=mviU9OeufA0

[2] https://www.newyorker.com/magazine/2009/06/01/the-cost-conun...

[3] https://slatestarcodex.com/2017/02/09/considerations-on-cost...

Re:Sneaky deals are keeping cheaper generic medicines off th... by prostoalex on Sunday June 30, 2019 @06:54PM (#20321088)
How would such a single-payer system protect itself against incumbents and beneficiaries subverting it to further their agenda?

We have single-payer k-12 education at state level, where the teachers' unions fund election campaigns, and when it's time to negotiate education contracts, those politicians are "surprisingly" very favorable to their funders and former colleagues.

Other government-run single-payer projects - Amtrak, USPS, etc - are not exactly beacons of efficiency either.

Re:Sneaky deals are keeping cheaper generic medicines off th... by keenmaster on Sunday June 30, 2019 @09:09PM (#20321693)
Teachers are government employees, so they have a more sympathetic case. I don’t think the U.S. would ever employ doctors directly like in the UK. Politicians would rather have more money to spend on other projects than a marginal amount more compensation for doctors that aren’t even on their payroll.
Re:Sneaky deals are keeping cheaper generic medicines off th... by prostoalex on Monday July 01, 2019 @05:25AM (#20323712)
Defense contractors or farmers are not direct employees either, yet they all found a way to extract maximum revenue from the system by greasing the right wheels.

You can trace it in California politics - the citizens were "in dire need" of high-speed rail back when construction unions poured significant funds into Sacramento, which was then overtaken by water infrastructure buildout (and respective rise of political contributions from farming industry), today it's our youngsters' education that needs critical intervention (and, by extension, underperforming pension plans of educators retired long ago).