Thursday, April 22, 2010

Reform and Massachusetts

Quit making things up. States were struggling to pay Medicaid costs before there was a recession. The new health care bill expands Medicaid, and this problem will not be fixed by an improving economy (whenever that is going to happen). Increased individual plan costs in Massachusetts are related to its bill. California is an entirely different market. And state regulators stopping increases is a moronic economic method of holding down costs. Legislators frantically forming committees will likely solve everything The concept of capitation, implemented by the insurance industry in the 90's, was eventually rejected partly because it incentivized providers to make money by giving less care. Everyone hates fee for service (even though that is how we pay for most everything in this country), but do you think they might care if, say, you pay for a yearly supply of food, but when you get it, you find the grocer has skimped on portions. And when your supply runs dry, they really don't have anything for you? And they are making a profit doing this? All to hold down overall national grocery costs?

Make it an argument.

I see the selected comments. as it happens, I agree.

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