Reduce Health Costs By Vigilance for Overuse?

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date Reduce Health Costs By Vigilance for Overuse? Elle 06-12-2009  Re: Reduce Health Costs By Vigilance for Overuse? Wallace 06-12-2009  Re: Reduce Health Costs By Vigilance for Overuse? Yadda 06-13-2009
Posted by Elle on June 12, 2009, 8:36 am http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande?currentPage=1 This article compares McAllen, Texas, the city with one of the highest Medicare costs per capita in the country, at nearly twice the national average, with cities with Medicare costs less than the national average. Health outcomes are the same(!). Relevance to financial planning: The article makes a compelling argument that doctors that have a revenue interest in what they prescribe (by way of procedures etc.) then overprescribe, and with no superior effect in health outcomes. The solution is not at all necessarily a single payer system but promoting the use of models like the Mayo clinics (details are in the article). Posted by Wallace on June 12, 2009, 11:18 am > http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande?currentPage=1 > > This article compares McAllen, Texas, the city with one of the highest > Medicare costs per capita in the country, at nearly twice the national > average, with cities with Medicare costs less than the national > average. Health outcomes are the same(!). > > Relevance to financial planning: The article makes a compelling > argument that doctors that have a revenue interest in what they > prescribe (by way of procedures etc.) then overprescribe, and with no > superior effect in health outcomes. The solution is not at all > necessarily a single payer system but promoting the use of models like > the Mayo clinics (details are in the article). That is why Medicare and untaxed employer health plans have made a major contribution to the cost of health care in the US. If the patient gets it all for free, they want a lot more of it, and will not pay any attention to the cost. The number one person responsible for watching costs is the consumer. Or, it should be. Posted by Yadda on June 13, 2009, 7:47 pm on 6/12/09 10:18 AM Wallace said the following: >> http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande?currentPage=1 >> >> This article compares McAllen, Texas, the city with one of the highest >> Medicare costs per capita in the country, at nearly twice the national >> average, with cities with Medicare costs less than the national >> average. Health outcomes are the same(!). >> >> Relevance to financial planning: The article makes a compelling >> argument that doctors that have a revenue interest in what they >> prescribe (by way of procedures etc.) then overprescribe, and with no >> superior effect in health outcomes. The solution is not at all >> necessarily a single payer system but promoting the use of models like >> the Mayo clinics (details are in the article). > > That is why Medicare and untaxed employer health plans have made a major > contribution to the cost of health care in the US. If the patient gets it > all for free, they want a lot more of it, and will not pay any attention to > the cost. The number one person responsible for watching costs is the > consumer. Or, it should be. > But the consumer only has a hazy idea of cost in most plans. It is designed that why to drive up costs for all the players but the consumers who have no seat at the negotiating table. Not Health Care, Sick Care. Similar Threads Posted PLanning for health care costs in retirement February 28, 2008, 1:40 pm The costs of refinancing January 24, 2008, 12:41 pm Nursing Home Care costs June 8, 2007, 12:25 am Schwab Institutional transaction costs December 28, 2008, 7:26 am Mortgage Closing Costs - Connecticut March 30, 2005, 1:00 pm SEP vs 401 K safe harbor costs for small company January 4, 2010, 4:57 pm How to shop around for health insurance? February 25, 2009, 5:07 am Health of Plan Admins June 28, 2009, 3:40 pm Government Health Proposals November 10, 2009, 7:57 pm Looking for People Who Actually Use Health Savings Accounts December 2, 2006, 1:00 pm