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Assorted links
1. Malaria and African economic development, via Chris Masse.
2. Lengthy profile of Larry Summers, from TNR, interesting and has new material.
3. Via Chug, markets in everything: topless coffee shop in Maine. And, via Matt, a topless doughnut shop, same state.
4. Update on Massachusetts health care; interesting throughout. Can they really do away with fee for service? ""Really controlling costs requires just stopping spending,” said Stuart H. Altman, a professor of health policy at Brandeis University." The Obama administration would be wise to keep those words in mind.
Posted by Tyler Cowen on March 16, 2009 at 11:47 AM in Web/Tech | Permalink
Comments
"Really controlling costs requires just stopping spending.” No, it does not.
That's preventing spending.
Controlling health care spending would mean actually, honestly, fully allowing 'control' of it to those who receive the care.
I control the spending on my heating, my investments, my groceries, my eye care, my car, etc. every day. I do not control my spending on my taxes or my health care. Those are set outside of my control.
Posted by: The Other Eric at Mar 16, 2009 1:03:03 PM
When really restrictive caps are emplaced to restrain spending, you will almost certainly see an explosion in medi-gap type policies available to those with the means to pay for them. You will see a competition for medical resources between those who can pay extra, and those who cannot.
Posted by: Yancey Ward at Mar 16, 2009 1:06:32 PM
"...all of which he's exploring in subatomic detail." That, I suppose, is the breathless shite school of American journalism.
Posted by: dearieme at Mar 16, 2009 3:01:13 PM
"The commission is looking at various options, but all would do away with the fee-for-service system, which provides perverse incentives by paying physicians and hospitals for each patient visit."
Fee for service provides perverse incentives? Wait until they try anything else, and they'll understand what perverse really means.
Posted by: Doug at Mar 16, 2009 4:59:36 PM
thank you for introducing some academic work on development.
recognizing causes of underdevelopment is one thing. acheiving proper policy is another. and i imagine it is difficult now more than ever to gives this consideration, as nations must prioritize themselves before others.
Posted by: hern at Mar 16, 2009 6:16:48 PM
From the MA health insurance article:
"Those who led the 2006 effort said it would not have been feasible to enact universal coverage if the legislation had required heavy cost controls. The very stakeholders who were coaxed into the tent — doctors, hospitals, insurers and consumer groups — would probably have been driven into opposition by efforts to reduce their revenues and constrain their medical practices . . . ."
There's a few terms for that, if a company had done what the politicians did: fraud, bait-and-switch, and deceptive trade practices are three of them.
"Blue Cross and Blue Shield of Massachusetts, the state’s largest insurer, recently devised an innovative model that pays doctors a flat fee per patient . . . ."
So, the doctors are supposed to pick up all the cost for a patient? I thought that's what the INSURER was supposed to do.
Max
Posted by: Maximum Liberty at Mar 16, 2009 7:07:09 PM
This is interesting, and you can bet that regulators in Maryland are watching this closely. Being the only Medicare Waiver State, Maryland is would have a better chance of getting this done.
Posted by: James Case at Mar 17, 2009 4:31:33 PM
I generally drink my hot beverage black ... but I think I might order a "coffee with milk", in that topless cafe.
Posted by: tkehler at Mar 17, 2009 5:01:25 PM
