Elise Gould: Reject Bush's Health Care Plan (from TomPaine.com)

[marmar]

Reject Bush's Health Care Plan
Elise Gould
March 12, 2007



Elise Gould is an economist specializing in health at the Economic Policy Institute.

For the last six years, the Bush administration and Republican Congress have put forth their solution to sky-rocketing health costs: consumer-driven health care. Underlying this policy lies the belief that Americans over-consume health care. Labeling this a “moral hazard” problem, proponents push for high-deductible health plans that make consumers spend out-of-pocket from the first dollar of coverage up to the plan deductible. The theory is that facing a greater share of the costs of medical care will make people better health-care consumers, cutting back on wasteful spending, spurring more competitive health care markets and, hopefully, lower prices. The Bush administration has offered tax breaks on out-of-pocket spending (health savings accounts or HSAs) for enrolling in qualifying high-deductible plans.

Unfortunately for them, firms haven’t answered the call and offered these type of health plans. According to a Kaiser Family Foundation survey, only six percent of employers offering health insurance provide workers an option to enroll in HSA-qualifying plans. Furthermore, a study by the Commonwealth Fund shows considerably lower satisfaction in these types of plans than traditional health insurance.

Not only do low offer rates and low user satisfaction signal problems with the consumer-driven health care solution, but there's compelling evidence to suggest that these types of plans will be ineffective at lowering health costs. It’s big-ticket items that drive aggregate health care expenditures—not one more visit a year to the doctor, one extra test or the choice of one doctor over another, but chronic conditions and costly hospitalizations. The top 20 percent of health spenders account for 80 percent of all health spending. The vast majority of high-spending medical interventions, then, lie above the region where the incentives from consumer-driven health care lie.

In addition, HSA contributions are tax-deductible, with the deduction working as a government subsidy which reduces their actual cost-effectiveness. That is, if the point is to make people face a higher fraction of the "real" cost of health care—why offer tax breaks for health care costs? Furthermore, even if people with high-deductible plans do economize on care, they could be penny-wise and pound-foolish—delaying preventive care and ending up with serious, expensive conditions that might have been prevented. .....(more)

The complete piece is at: http://www.tompaine.com/articles/2007/03/12/reject_bushs_health_care_plan.php

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1. The logic behind this makes no sense, since when do consumers

....have elective cancer, heart failure, lung diseases, high blood pressure, diabetes, etc.? The Bush plan will deliberately create catastrophic medical problems for more and more people, eliminating preventative heath care completely. Look at what Bush has done to military veteran heath care. Impeach Bush/Cheney now!

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2. they are Idiots playing with people's lives/health!

[Warpy]

3. CONSUMER DRIVEN???????

Let's see how many phone calls THEY make when that chest pain hits, trying to find out which ER will be the cheapest!

This whole notion of pushing the burden of deciding which hospital to use when there's a crisis on a person in danger of death is really beyond stupid.

The whole notion of having people with no medical training police the tests and treatments prescribed by their doctors is dangerous as hell.

Health care is not shoes or video games. It absolutely does not belong in the "free" marketplace.