Monday, August 17, 2009

Much Ado About Health Care

The other day I went to Dianne Feinstein's office to talk about health care with a staffer. There were about 15 other people there. It was a depressing event. Basically, it's clear that health care isn't a big issue with Senator Feinstein. Her main concerns are that whatever gets passed shouldn't cost too much money and especially should not create programs that end up costing California money that it doesn't have.

We have created a bizarre and byzantine system in this country concerning health care. It's expensive. It results in high infant mortality and low life expectancy relative to other industrialized nations. It's crap. The only thing it's good at is treating people with exotic problems using fancy equipment at a ridiculous cost. When it comes to basic care, it's junk. It ought to be scrapped completely.

Why we won't admit that our health care system is junk is unknown to me. But I think it may be because we have created a system that reflects the ethos of this country. We hate government. So our system is private. We love toys. So hospitals buy millions and millions of dollars of fancy equipment. We love to sue. So we allow people to collect millions for wrongful medical practice in courts of law. We hate taxes. So we have companies provide medical benefits tax free. We are fearful of dying from some exotic disease so we're all for ridiculously expensive procedures that solve the one in a hundred thousand case of illness.

Our health care system is like a Harley. It's expensive. It's wasteful. It doesn't handle or ride well. But it looks impressive from a distance. It's great for the occasional times you want to go to 0 to 100 in a hurry. Like a Harley, our health care is distinctly American. And it's junk.

To attack our crappy health care system is essentially to attack the American way of thinking. Boundless optimism is always a good thing except in the case of health care. It leads to boundless costs.

This year our president decided to try and reform health care. It was a noble idea, but he made a few blunders along the way. First and foremost, he decided to let Congress write the laws for reform. Congress has been unable to create significant social welfare legislation in over thirty years. Time Magazine's Joe Klein says their ineptitude is due to the fact that this country is getting old. Apparently only fresh democracies can do anything right. But that's ridiculous. Did Congress have a "best used by" date of 1978?

No, what has happened is that lobbying money has completely corrupted Congress. I don't know how many hundreds of millions of dollars the health care industry has given Congress over the last several years. But asking them to write laws reforming health care is like asking the American Association of Prostitutes to right a manifesto on the value of marital fidelity. Neither has a clue.

Plus no one wants to raise taxes, which means there is no money for big programs. What you get are things like George W. Bush's No Child Left Behind Act. These are unfunded mandates, laws that reflect what we'd like to do if we had dough. The corruption of Congress by money and the taxpayer revolt of the late 1970s has left this country running on fumes. If we wouldn't work so damn hard in comparison to other countries, we'd be in one huge mess. We scrimp on education, which hurts our economic competitiveness. We let health care be catch as catch can, which leads to major holes in treating our public and preventing disease.

Obama should have never let Congress near a bill until he had figured out what he personally wanted. The end result was that the GAO looked at what Congress was proposing and pronounced it unworkable. It would cost 100 billion a year of government money and do nothing to curtail health care costs. From that moment on, real health care reform was over.

Instead, what we now have is the theater of Obama trying to save face, the right wing trying to take advantage of Obama's misstep by demonizing him, and seniors scared to death that health care reform will come out of their hides. It makes for great news. But we aren't talking about reform anymore. We're just engaging in rhetoric.

A bill will be passed no doubt. More people will be insured than before. That's a good thing. Seniors will get less health care than before. That's a bad thing. But in the end our health care system will be much the same as it was before, crap.

Let's go from the general to the specific. I currently pay about 10K a year for my health insurance and doctors visits. My sweetie and I are perfectly healthy, lucky us. Our deductible is 5K per person. Our health insurance includes one annual exam less lab expenses.

Our costs are roughly double what they were five years ago despite being elevated to the lowest cost tier of health insurance (due to our lucky good health) and doubling our deductible. My routine urine analysis from my last annual exam was 700 dollars, up 500 percent from five years ago. When all is said and done with health care reform what will I be paying five years from now? I'd bet anyone 5K that my costs will be over 20K five years from now. My health insurance costs will be dramatically up. Because I'm older, I'll have more "issues," which means more doctors visits. I'm convinced that despite all of the rhetoric and shouting, this debate about health care is much ado about nothing.

As someone once said about academia, the fights are so vicious because the stakes are so small. That's what's happening with heath care today.

4 comments:

Frank said...

"We scrimp on education"

The US spends more per student than most countries, far more than Germany or Japan.

http://www.nationmaster.com/graph/edu_spe_per_sec_sch_stu-spending-per-secondary-school-student

also: http://www.ed.gov/about/overview/fed/10facts/edlite-chart.html

As for spending on health care, the US government already spends more per capita than Canada, UK or most other socialized countries. (USA = $2800, Canada=UK=Germany = $2200) See page CRS-3 of this report to congress:

http://assets.opencrs.com/rpts/RL34175_20070917.pdf

This indicates that efficiencies should be sought in the government sector. A Canadian style health care system can be implemented for all based on present USA expenditures on Medicare and Medicaid without raising taxes.

No I'm not a shill for the RNC.

fortyquestions said...

I tend to be focused on higher education. Over the last 30 years, public support of flagship state universities has not even come close to keeping pace with increased costs. Operating budgets of those institutions typically now rely on private sources and tuition for about 80 percent of their funds. The tuition increases necessary to offset the lack of public funds shut out many of our best and brightest from attending and graduating from top-notch schools. There's a wonderful book which came out recently, The Race Between Education and Technology, which shows just how America has lost its competitiveness due to its failure to educate its workforce.

Yes, we do spend more than other countries on health care. Yes, we should be able to spend less and provide for reasonable health care for all. Yes, other countries provide examples. But we are a different kettle of fish. Usually boundless optimism is a wonderful trait. But in health care, it can lead to spending an obscene amount of money on prolonging life, often painfully, for a few months. Unless this country recalibrates its view of what health care should and should not do, I believe we will always have an expensive and inefficient health care system.

Frank said...

According to the US Dept of Ed, spending on Higher Ed still is higher than all except Switzerland:

http://www.project.org/info.php?recordID=205

Also, it's hard for me to accept that government should demand improved efficiencies in private health care spending when theirs is so profligate and probably more so. Since the Canadian system seems to be the envy of so many here we should expect our government to reproduce it as they already spend more per person than our northern neighbors.

fortyquestions said...

America was able to dominate the world's economy for many decades partly because we led the world in educating our workforce. For about thirty years, we've stagnated in terms of the average number of years our citizens go to school (although college graduation rates are up). Other nations have caught up to us and have exceeded us. It's no wonder that they are also challenging us in the world marketplace.

One of the frequent complaints of conservatives is that there is incredible fiscal waste in government. But so far no conservative as president has seemed to find that waste. My current governor ran under the campaign that he would remove bureaucracy and waste; he didn't find anything of substance to remove in our state as well.

My view is that if conservatives really want to cut down on government spending they should look at the low lying fruit: the military. We spend far more money on military expenditures than any other country. In 2010, our supposedly liberal president Obama is proposing to spend 61 billion dollars on fighting in Afghanistan. That's not only a waste of money. It's money that will lead to a tragic loss of lives in our military forces.

We have spent one trillion dollars fighting an unnecessary war in Iraq, a war that has led to the loss of thousands of good young men. Even when we propose to end our fighting there, we will be spending 60 billion dollars to "keep the peace."

As for health care, we do squander in our byzantine system billions because of federally mandated confusing paperwork. If you want a single payer system like the Canadians, I'm more than with you. But this country doesn't want that. For whatever reasons, US citizens prefer a private system.

It doesn't matter if that system is bloated and doesn't provide health care for tens of millions of people. It doesn't matter that somewhere around 1/3 of all bankruptcies are medical-expense related, and most of those people have health insurance. We refuse to believe that our system is junk. I don't understand why US citizens are being so blind. They just are.