The Solution to Obama Care

Dear Friends,

 

It seems to me, the solution to our health care dilemma, within the framework we are given, is to create a new standard for providers and insurers while standardizing policy choices. This would be coupled with elimination of as much regulation of the industry as possible. The goal is to create system where the feedback of the market is restored, the granularity of information is smoothed out and most of all, the quality of health care will continue to make leaps and bounds. If the republicans were to offer such a system to replace the pending train wreck that is Obama care they would find the people behind them. Since we will all need health care at some time in our lives this is a critical question for all of us.

 

The feedback mechanism of the health care industry is broken. That is obvious. The cost of services is not a factor in a patient’s decision where to go for treatment, or what course of treatment to follow and as a result, the cost benefit of various plans. Couple this elimination of the normal cost benefit feedback of the market system and costs must rise at a rate that exceeds the rate of inflation. This is as evident as gravity when we drop a hammer on our toe.

 

The system where by people find a doctor, with very little knowledge of how good that doctor is compared to others he is competing against for patients, and what he charges compared to his competition. This information is important if a patient is to rationally decide on a doctor or other provider. Today we decide by anecdote not empirical information. Clearly anecdote is a far less reliable means for answering any question than cold hard facts.

 

To replace the feedback mechanism and asynchronous information a simple set of standards will do. Have each provider of health care services offere a cost performance sheet, of their charges for various treatments along with their results, charted against the industry average and the local average, against the results for that provider. There would be several standard health care options for every insurer but they could at their own discretion offer plans with greater or lesser levels of service. This cost performance sheet would be available in the offices and on their web page. Another measure would be, all insurance companies would have to agree on a standard form for treatment providers, that all insurers would use and accept. Lastly, the transmission of market feedback would be, insurers would give patients a small percentage of the savings, if patient’s choose a lower cost treatment and/or provider.

 

If patient’s were rewarded, in cash, say… 10% of the savings between options, we would choose the lower cost option more often, lowering the ultimate costs to insurers. The synchronous knowledge provided by the cost performance sheets, would allow patients to logically decide options such as treatment and provider, as well as to choose to get the bonus cash, if we choose a lower cost option. The feedback mechanism would be restored driving down costs and pushing up quality. Research and development would be channeled more efficiently and might yield results faster due to the efficiency market forces bring to an industry.

 

The giant catastrophe that is Obama care must be done away with, else we will kill the goose that laid the golden egg. Government interference has always yielded disaster. Never has any government brought rationality to anything it has ever taken over. Political favor becomes the top motivating factor in every decision, pushing logic and reason further and farther back in priority, until all decisions have no connection with reality at all, and are insane as a result. History is as adamant on this subject, as it is on the opposite being true, regarding the market system. Pragmatically, we have to take the logical path, especially when the consequences are so dire for us and our children if we choose poorly.

 

 

Sincerely,

 

John Pepin

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