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Asymmetrical Information: Who pays for health care?
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"Asymmetrical Information
An opinion-ridden free-for-all
« Who's the real empire? Main Were the strikers wrong to do what they did? »
December 28, 2005
From the desk of Winterspeak :
Who pays for health care? Paul Krugman has a good column on rising healthcare costs and how to ration them. Krugman has been a frothing nutter for about 6 years now, so it's nice to see something honest and reasonable for a change.
On the topic of rising healthcare costs, Krugman correct identifies the main culprit: new (expensive) medical technology Consider what happens when a new drug or other therapy becomes available. Let's assume that the new therapy is more effective ... than existing therapies ... but that the advantage isn't overwhelming. On the other hand, it's a lot more expensive than current treatments. Who decides whether patients receive the new therapy? We've traditionally relied on doctors to make such decisions. But the rise of medical technology ... makes ... medicine ... in which doctors call for every procedure that might be of medical benefit, increasingly expensive. Krugman's prescription is to have the government step in and regulate pricing. He does NOT point out that this fix works by eliminating new (expensive) medical technology. This does not matter if you are an old person or someone with a treatable disease, but sucks if you are a young person or have a (currently) untreatable disease.
Transfering healthcare from future generations to the Boomers may seem like a clearly Good Thing to Krugman, but not to me.
One area where public interest has killed research is in AIDS vaccine research. Current retroviral therapies costs hundreds of dollars a year and need to be taken over a lifetime. Activists have agitated for these drugs to be given for free to poor nations, and patients have agitated to have these free drugs re-imported into rich countries at lower cost. This appeals to our human moral sens"
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