The Market Ticker
Commentary on The Capital Markets- Category [Health Reform]
Logging in or registering will improve your experience here
Main Navigation
MUST-READ Selection(s):
Make Me Move

Display list of topics

Sarah's Resources You Should See
Sarah's Blog Buy Sarah's Pictures
Full-Text Search & Archives
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2018-04-20 07:00 by Karl Denninger
in Health Reform , 175 references
[Comments enabled]  

Pick one folks.

Those are the only two options.

The "entitlement" game is back on, of course.  But let's toss something else into the mix while we're at it -- the that that it has now been admitted that actually curing people is not, and never will be, the goal of our "medical scam, er, system."

The translation: if you develop a new drug that cures people rapidly, then patients will not need to take the drug on an ongoing basis, and that limits the amount of money a company can make.

The analyst asks: "Is curing patients a sustainable business model?"

The "problem" appears to be particularly great if the disorder in question is a transmittable disease. 

.....

Their introduction (Sovaldi, .et.al.) was a landmark event -- for two reasons. First, they provided a near-certain cure for hepatitis C in 12 weeks. Fantastic! Second, they were among the first of a series of drugs to be priced at exorbitant levels. When Harvoni was introduced, a 12-week course in the U.S. cost $94,500. Interestingly, in India, the same 12-week course of treatment cost only $900. (I assume that the company was still making a profit on its sales in India.)

Was this outrageous pricing good enough for Goldman Sachs? Apparently not.

Therefore we cannot actually cure any transmissible, but chronic, condition.  If you do then there are no new patients and no more money.  Q.E.D. that won't be the model that is pursued.

It gets even worse when it comes to cancer:

Over the last five years, cancer research has seen the “greatest advances,” including a new approach to treating the complex disease as a “chronic disease,” instead of trying to cure it.

“We have seen the greatest advances in cancer medicine in the last five years with drugs targeting the immune system moving into the clinic and showing remarkable response rates with quite a few different malignancies,” Lisa Coussens, Ph.D., Chair of the Department of Cell, Developmental & Cancer Biology, said to Fox News at the American Association for Cancer Research annual conference.

However, the response rates do not indicate that medical doctors and scientists are getting closer to a cure – or if that is still the goal.

“With regards to a cure for that, it’s really not a realistic goal. I don’t know if cancer is a disease that can be cured. I think for most of us, the goal is management where we think about cancer like other chronic disease,” Dr. Coussens said. “50 years ago diabetes was a death sentence, now it is a chronic disease that is managed.”

Of course that "management" means ever-present cash flows for the rest of the person's life.

And pay attention to this specific statement form the American Cancer Society:

“Cancer isn’t always a one-time event. Cancer can be closely watched and treated, but sometimes it never completely goes away. It can be a chronic (ongoing) illness, much like diabetes or heart disease,” the website says.

Uh huh.

You mean like diabetes, specifically Type II diabetes, right?

Type II diabetes has a near-zero cost means of containment if not reversal, available but nobody is out there in the mainstream advocating it.  It's simply this: Stop eating carbohydrates except for green vegetables.

It works in nearly everyone who does it and it costs nothing.

But the medical system refuses to put this out there and so does the government as the primary means of addressing that condition.  As I pointed out quite some time ago in The Low-Hanging Fruit this one condition is responsible for about 25% of all Medicare spending -- and a likely similar amount off Medicaid.

Last year the Federal Government spent $1,443 billion on those two programs.  The states spent an additional $204 billion on Medicaid matching payments (their "share" of the total in 2016; I do not have 2017 numbers available yet.)  That totals approximately $1,600 billion dollars; getting rid of $400 billion of that overnight would make an enormous different in the federal budget deficit (in fact it would wipe out two thirds of last year's deficit entirely!) without disadvantaging one person -- in fact their health would improve and morbidity in the form of blindness, amputations and disability would massively decrease.

But literally nobody has, since I published that article over a year ago, picked up that ball and attempted to run with it at either the state or federal levels.  Nobody -- and I do mean nobody -- in any of the government roles involved will do anything to tamper with the over one and a half trillion dollars a year that the medical scam imposes in cost on the public even though it is not just a monetary cost it is also a human suffering cost that these policies promote and enhance.

This crap has gotten so brazen that now even Goldman Sachs and the American Cancer Society are willing to come straight out and state, in public, that the model of "medicine" is not to actually cure or fully mitigate diseases and conditions any more -- it is, rather, to develop drugs and therapies that have the exact same profile of consumption as an addictive drug in that the person in question becomes compelled to spend on same forever.

We already have such drugs -- they're called opioids and the drug industry makes billions selling them.  The problem is that they have both a tolerance response and a lethal dose; perpetual, life-long use thus has a high probability of the two curves intersecting at which point the person taking the drugs dies and doesn't buy any more of them.

But if you can find a way to effectively compel someone to take expensive drugs for cancer or diabetes forever, without that "coffin corner" problem then you can effectively "addict" them without the "side effect" of their eventual accidental suicide.

THIS IS THE BUSINESS MODEL OF "MEDICINE"  TODAY AND IT IS BANKRUPTING THE NATION.

The people promoting and practicing this need to be exposed for who and what they are and then put into a plastic chipper -- feet first.  We must put a stop to this, right here and now.  The option to defer that choice no longer exists; we have state pension fund shortfalls driven to a large degree by these ruinous policies and "expenses" that have exactly nothing to do with the best option available for people at large but rather are intentionally designed to screw the public out of trillions of dollars a year and keep them sick.

The entire business model of so-called "medicine" in this country is a scam.  We can collapse that business model and expense by 80% almost overnight starting with The Low Hanging Fruit and moving on from there to a few simple legislative and law enforcement changes.

We either do it -- and do it now -- or the United States will fiscally collapse as the ever-spiraling higher percentage of GDP consumed by these rapacious bastards will overtake government and private revenue at both a state and federal level.  There are real proposals available to do so, starting here and here.

There is no "entitlement problem" with Social Security.  The entire problem lies in the medical system and its business model which must be changed using existing Anti-Trust law along with voiding all special protections they have gotten passed, such as preventing cross-border drug price arbitrage.  If we do not begin to execute on this now the point of no return on both the state and federal side will be reached and that will be the end of our ability to deal with this other than by government fiscal collapse, massive civil unrest or even civil war.

View this entry with comments (opens new window)
 

2018-04-15 13:10 by Karl Denninger
in Health Reform , 189 references
[Comments enabled]  

This is utterly insane -- that a so-called "newspaper" can publish this sort of factual lie and not immediately be bent over the table and, well, you know -- is outrageous.

A group of distinguished economists from the Hoover Institution, a public-policy think tank at Stanford University, identifies a serious problem. The federal budget deficit is on track to exceed $1 trillion next year and get worse over time. Eventually, ever-rising debt and deficits will cause interest rates to rise, and the portion of tax revenue needed to service the growing debt will take an increasing toll on the ability of government to provide for its citizens and to respond to recessions and emergencies.

..... (goes on to talk about the claim that this is mostly about entitlement spending growth)

Entitlement programs support older Americans and those with low incomes or disabilities. Program costs are growing largely because of the aging of the population. This demographic problem is faced by almost all advanced economies and cannot be solved by a vague call to cut “entitlements” — terminology that dehumanizes the value of these programs to millions of Americans.

And there you go with the lie right there.

This is what happens when you allow very wealthy people who got that way by cheating anti-trust law for a couple of decades to enter the world of so-called 'news' and distort the truth on purpose.

Their first weapon is to lie.  The second is to label anyone who tries to oppose their position on anything by calling them names and attribute to them an intent to "de-humanize" people.

The truthwhich is trivially discernible from simply looking at the budget and as-spent in the Monthly Treasury Statements over time is that indeed it is specifically the explosion in spending in Medicare, Medicaid and SSDI (the portion of Social Security that is "disability") that is responsible for the entire problem.

SSDI is a particularly-insidious issue in that any sort of dispassionate analysis reveals two facts that nobody will take on honestly: (1) Disability recipients go up massively during recessions and (2) once on disability nearly nobody ever leaves the program.

The problem is that there is no plausible organic explanation why people "more often" become actually disabled during recessions.  Instead "disability" becomes a replacement for unemployment compensation either up front or when the checks run out; that is, those people aren't actually disabled as the program allegedly requires.

In other words, to be blunt, these "explosions" of alleged disability are fraud.

But the other two problem areas -- Medicare and Medicaid -- are real.  And here again is the claim:

Program costs are growing largely because of the aging of the population.

That is a lie and it is a knowing one.

Medicare is for old people (aging of the population.)  Medicaid is for poor people who are neither on disability (if you are you get Medicare irrespective of age) or 65 (old.)

Yet the Medicaid spend has been increasing at nearly the same rate as Medicare.

If the ramp in these costs was largely due to the aging of the population the entire problem would be focused on Medicare.  It's not, that's trivially discernible by looking at the MTS over the last few decades' time and all of these so-called "distinguished" people know that.

They're lying.

They're lying to protect medical monopolists who are breaking 100+ year old anti-trust law on a daily basis and, in addition, who have lobbied for explicit protections from some of those laws -- such as making it a crime for you to cross a border and fill a suitcase with prescription drugs you can buy from the same factory but at 1/10th or even 1/100th of the price here in the US and then return to sell said drugs -- which would instantly collapse the price here.

What's worse is that the Washington Post, owned by Jeff Bezos, is basically shilling for the company that Jeff Bezos runs (Amazon) that wishes to insert itself into the medical monopolist game and siphon off a few trillion more for itself.  In other words the owner of the so-called "newspaper" is chuckling while his publishing property runs interference for and lies about the bankruptcy of America and our federal budget so he can personally steal a few hundred more billion dollars while the rest of us watch the nation literally burn its fiscal house to the ground.

There are fixes for this problem that I've published on repeatedly.  I wrote on them in Leverage.  I've been raising Hell about this since the 1990s.  And there are specific proposals to be found right here, in these pages.  You can start here and here, for two examples.

Nobody on either side of the aisle wants to take this on because they're all being bribed by both the so-called "jobs" created through this theft and scam along with direct lobbying.

When will the people of this nation hold to account those who have been and are screwing you blind on a daily basis?

View this entry with comments (opens new window)
 

2017-11-01 12:14 by Karl Denninger
in Health Reform , 499 references
[Comments enabled]  

Ok, so I have the APTC for a single person who has reduced income to right near $20,000 a year for 2018.

In Florida it is now $760/month, or $9,120 a year.

This is wildly up from $446 for last year; in fact it's up 70%.

This means I can now have a Silver plan for about $15/month, as opposed to a very low-level Bronze plan for under a buck.  I can also choose virtually all the Bronze plans for zero (since the cost is lower than the APTC), but that would be insane since I'd be leaving a huge amount of your money on the table.

The actuarial value of a "Silver" plan is wildly better than any of the Bronze plans.

There is one "gotcha", which is hospitalization co-insurance that does exist on the Silver plan but not on the Bronze.  But the Silver plan in question has a zero deductible, so even with 20% "coinsurance" you'd have to run a hell of a bill to lose that bet especially considering that you get the insurance-company racketeering-deduction price.

Folks, you have to be flat-out nuts to work harder and run into the subsidy phase-out, especially if you have a spouse, even if you do need routine medical services since you can now buy zero-deductible Silver plans for less than the cost of a burger-and-beer in your local pub!

QUIT ****ING WORKING AT $20,000 A YEAR OF INCOME, FIGURE OUT HOW TO MAKE YOUR LIFE FIT IN THAT EARNINGS LEVEL AND YOU WILL NOT ONLY PAY BASICALLY ZERO FEDERAL TAX (OTHER THAN EMPLOYMENT TAXES, OF COURSE) AND YOU WILL GET CLOSE TO $10,000 OF "HEALTH INSURANCE" WITH A ZERO-DEDUCTIBLE PLAN  FOR UNDER $200 A YEAR.

No, you probably can't do this in high-cost-of-living areas without living in a slum.  Yes, you can make it work perfectly-well in lower-cost-of-living areas and be perfectly fine.  I'm doing it and you can too.  Yes, it means you have to change your lifestyle but I'll be double-******ned if I'm going to go out and earn a six-figure income and then have government thieves not only tax more than half of it away (which they will) but then double-monkey-**** me by extracting approximately $10,000 in after tax money in addition from me for "insurance" that, unless I have some sort of medical catastrophe in the next 12 months in fact provides zero value to me.

View this entry with comments (opens new window)
 

Here it is:

"Notwithstanding any other provision in state or federal law, a person who presents themselves while uninsured to any provider of a medical good or service shall not be charged a price greater than that which Medicare pays for the same drug, device, service or combination thereof."

That's it.

One sentence.

If you want to add a penalty clause with it I propose the following:

"Any bill rendered to a person in excess of said amounts shall (1) be deemed void, with all services and goods provided as a gift without charge or taxable consequence to said consumer but not deductible by said physician or facility from any income or occupational tax and (2) is immediately due to the customer in the exact amount presented as liquidated damages for the fraud so-attempted."

It ends the "Chargemaster" ripoff game.

It ends the $150,000 snake bite or the $80,000 scorpion sting.

It ends the $500,000 cancer treatment.

It ends all of that, immediately and instantly.

I remind you that Medicare is required to set pay rates by law at a level that in fact are profitable -- that is, above cost by a modest amount -- for everything it covers.  Further, those pay rates are audited regularly to prove that they in fact are above cost.

Does this solve every problem?  No, and in fact that would leave alone the existing monopolistic pricing systems that many medical providers, whether they be drug makers, device makers, service providers or otherwise have in place.  It would do exactly nothing to get rid of the 10 paper pushers hired for every doctor or nurse, none of whom ever provide one second of care to an actual person through their entire time of employment.

But it would instantly end walking into an emergency room and getting hammered with a $50,000 bill for something that Medicare will pay $5,000 for.

I remind you that even quite poor people can manage to come up with $5,000 in a life-threatening emergency.  Sure, they might wind up paying 25% interest on the credit card, they might have to stop smoking their $5 pack/day cigs, and it might take them three or five years to pay it off, but they can probably do it.

It's not an answer to the problems the mediscam imposes on society, but it would sure as hell bring down costs for people instantly and permanently, and would make the decision to not carry insurance one that people could opt for while having a rational shot at paying cash -- at least for those in the middle class or better, for whom a $5,000 surprise would be bad, but bearable.

More to the point with the crazy deductibles today the $5,000 would actually buy care and eviscerate the insurance ripoff at the same time, because today you get to pay the $5,000 plus another $10k/year in "premiums" -- for exactly nothing.

This matters because most of the argument for so-called "health insurance" is actually about extortion -- either buy the product or be ruined with charges that are 5, 10 or even 100x what someone who has bought the product will pay.

Ending that will force health insurance companies to actually provide a product that is affordable and provides a reasonable set of benefits -- or people can simply stick up the finger and pay cash.

Pass that, which should take no more than 30 seconds to introduce and put on the floor of both the House and Senate and then we can debate this as a permanent solution.

View this entry with comments (opens new window)
 

2017-04-04 09:16 by Karl Denninger
in Health Reform , 900 references
[Comments enabled]  

Let's talk about the implementation of my model bill that I recently posted to reform health care on a permanent basis.

It's fairly easy to envision timelines based on complexity.  Simply put, most of this isn't complex because providers have price lists now -- you just can't see them.  So with that said, let's look at an example and assume The Bill was passed and signed somewhere around 30 September -- or the close of the fiscal year.

What's next?  The following timeline appears to be reasonable.

Beginning immediately on signature with implementation required on or before 1/1/2018:

  • CMS (Centers for Medicare and Medicaid Services; the existing federal agency) would be required to spin up the interface for Treasury to verify whether someone who presents credentials as a US citizen or lawful permanent resident is, in fact, a citizen or lawful permanent resident.  Treasury already has this via the Social Security Administration, since they have the records of all issued Social Security numbers and addresses from tax filings.  In fact you can get at this right now (for yourself) via http://ssa.gov.  CMS also already has an electronic interface system for all medical providers who are registered in order to submit Medicare or Medicaid billing; ergo, the infrastructure is already in place along with access credentials.  Medical providers who wish to avail themselves of the ability to bill Treasury for indigent patients would have to register, but the number of providers currently not registered is a tiny minority of the whole.

  • CMS begins publication of Medicare reimbursement rates for all procedures, drugs and devices.  CMS already has developed and maintains this information so this is simply a publication of existing data and can be done very quickly.  The list may be updated annually as is now the case however with Medicare being a reimbursement source but not a direct billing source as of 1/1/2019 fair notice to all non-Advantage Medicare recipients so they can start shopping providers and services is necessary. (Medicare Advantage customers will have this data from the Medicare Advantage company they select and it may well be different between different Medicare Advantage providers.)

  • Providers must put together their price lists.  They have three months to do so; failure to have and post one as of 1/1/2018 means you're closed!

On 1/1/2018:

  • Providers must post their prices and on demand honor them, along with affirmative consent requirements.  A customer may present him or herself on January 1st 2018 and request the published price.  If they do so then binding, fixed-price treatment per the price schedule and treatment consent rules in the bill must be honored.  Note that all such binding prices must include any consequential events or complications (e.g. those caused by the treatment or the facility in question.)

  • No event caused by a provider or treatment may be billed to the customer.  Alignment of the customer's interest in NOT having an MRSA infection, for example, with the provider's interest in reducing their cost must take place on an expedited basis.

  • "Most favored" nation pricing for drugs begins.  No exceptions, no apologies.  Drug prices drop like a stone.

  • Open testing begins.  If you wish to purchase a test or other diagnostic without invasive exposure beyond a blood draw and not bearing radiation or similar exposure, you may -- for cash and without a prescription or doctor's order.  Since all medical providers must have posted prices on 1/1/2018 you have a list of prices available to you and places to shop from.

  • Auxiliary services must be open.  You can buy said test wherever you want and bring the results to your doctor for consultation or treatment, without limitation.

  • A 365 day period begins during which medical providers may continue to maintain records and coding, but they must also provide human-readable records at the point of service to the consumer.  Since there is basically no medical office in the nation that doesn't have PCs or similar this is trivially done; 3 months is more than enough time to put in place the policy to provide records at the time of treatment to the consumer.

  • CMS and Treasury continue their tax processing and billing integration work with a start date of 365 days hence, or 1/1/2019.  This will be necessary to deal with EMTALA repeal and related from the bill.

  • A 180 day notification period begins during which lifestyle modification is mandatory for those with existing conditions on public medical assistance in order to receive Treasury Billing (and potential medical debt forgiveness at death due to their indigence.)  This specifically applies to Type II diabetes suffers on publicly-funded health programs, although the list of conditions will likely expand.  Those who claim that cessation of eating carbs and PUFAs are not sufficient to bring their blood glucose either under control or materially improve their condition may challenge the individual applicability to them during this time, and must prove same via isolation test (which will likely take less than 48 hours!) with them bearing the cost of the testing in cash if they lose.  Since nearly all of these people either have or should have home instrumentation (e.g. a blood glucose meter), and those who don't can certainly buy one for a few dollars at any drug store including such outlets as WalMart over the counter, they ought to have damn good evidence before attempting to claim an exemption.  These people will also know in advance, or easily be able to determine, if they're going to get caught if they try claiming an exemption and are lying.

  • A 180 day period begins during which Health Insurance companies are required to put together true insurance offerings as required under the Bill to continue selling any health-related policy with effect beyond 12/31/2018.  Since state regulators typically require some notice period (usually six months) this means they must submit same by 6/30/2018.

On 7/1/2018:

  • Medicare and Medicaid recipients with diabetes who have not made the lifestyle adjustments required are cut off from further government funded or transferred billing for their condition until and unless they make the required lifestyle change for at least six months.  They had six months warning and ability.  For the last six months of 2018 the Federal Government, during the remainder of the transition, will see approximately $200 billion in reduced spending. 20% of the adults in the United States have had their pants fall off.

  • Health insurance companies must have posted to the states their catastrophic plan pricing and coverage, along with whatever other offerings they wish to make for the 2019 calendar year.

  • All providers who intend to bill indigent customers must be registered with CMS to provide CMS with sufficient time to process any pending applications and resolve questions prior to 1/1/2019.

On 1/1/2019:

  • Level pricing and quote-before-service (and the procedures for exigent circumstances) for all customers is mandatory.

  • Centralized medical record and coding requirements end and all customers must receive their medical records at the point of service.  The AMA's monopoly on coding revenue (which, IMHO, should have resulted in them being indicted years ago) ends.

  • EMTALA repeal is effective; illegal immigrants no longer can access emergency services at the public's expense.

  • Medicaid repeal is effective at both State and Federal levels; all Medicaid spending ends.

  • Medicare Part "B" repeal is effective.  For "HMO" or "PPO" style coverage post this date Seniors can buy Medicare Advantage policies as they do now but they are not compelled to do so (as they are now.)

  • PPACA repeal is effective; all Obamacare policies, taxes and tax credits end.

  • US Code and CFR amendments to remove the PPACA, Medicaid, and Medicare Part "B" components become effective.

  • Lifestyle requirements continue.  Again, this specifically applies to Type II diabetes where a zero-cost lifestyle change simply comprised of what one eats is sufficient to reduce or eliminate drug and procedure requirements along with the degenerative effects of the condition.

  • All citizens or permanent residents who assert inability to pay a provider now have their bills submitted to Treasury for payment within 30 days.  The customer can choose any provider but the price charged must be level as for anyone else.  Providers who have more than 50% of their customers submitting invoices to Treasury on an annual dollar-billed basis are subject to audit for charges being reasonable and non-collusive (see below.)  The 60 day "no fault cure" policy begins for those who have bills submitted to Treasury due to a claim of inability to pay and tax liens begin to accrue on March 3rd, 2019.

  • For those on Medicare CMS continues to provide the payment rates it will cover to the public for Parts A and D but the customer must submit claim for payment and is responsible for the difference should the price charged be higher than the reimbursement amount.  Medicare customers thus now have an incentive to shop and no restriction on which provider they use for services.  For Medicare customers not using an "Advantage" plan Medicare Part "B" ends both as to the premium collected and benefit disbursed since Part "B" has been deleted.  For Seniors who find themselves unable to afford the portion of payment they must make even with Medicare's typical 80/20 split due to indigence they may assert that indigence just as can a former Medicaid customer and as such low-income Seniors are protected to a much greater extent than is currently the case with Medicare since they enjoy 100% access to all medical providers -- a huge increase in choice compared to today and they have access to the same billing deferral via Treasury that former Medicaid consumers have.

  • For former Medicaid consumers they may assert indigence and thus may access any medical provider as may anyone else who can pay cash.  This is a massive improvement in their access to health services over today as many providers today refuse Medicaid patients (other than via the ER!), but it comes with a tax lien that, should their economic circumstances improve in the future or should they have refundable tax credits, they will be expected to pay.  As a result former Medicaid recipients will, for the first time, have an incentive to both shop and consume medical services wisely.  Many former Medicaid consumers will choose to pay cash, especially for drugs, since a large variety of drugs will be available at monthly costs similar to that of a cup of coffee from McDonalds, but for services where they cannot afford to pay directly the safety net will be available via the Treasury.

  • Private and corporate-funded catastrophic plans, along with any new "PPO" type plans, take effect.  
    With price transparency and no billing obfuscation or "hiding" insurance costs drop like a stone.  Typical "catastrophic" coverage will be available for a few hundred dollars a year.

  • Direct and hidden billing of insurance companies of all sorts, along with "explanation of benefits" nonsense and the implied extortion attendant with same ends.  The customer is billed at a level price as with all other customers for the same good or service; whatever insurance they may have, whether it covers the service(s) provided and how much it will cover is between only the customer and the insurance company.  Collusive behavior, hidden pricing, performance of procedures without prior consent (except in exigent circumstance) and price-fixing disappears entirely.

  • For the first time in 30 years real competition breaks out in the medical field -- not just on price but also on quality of service.  With cost and outcomes exposed customers will be able to research and choose just as they choose a cellphone or automobile today.
  • Non-citizens/non-green-card holders have no right to treatment of any sort nor does any provider have liability for refusal to provide it without payment.  Non-citizens and non-green-card holders (visitors, illegal immigrants, etc) may purchase services and products for cash should they be willing and able to do so.

  • State CON laws and similar are all pre-empted.

  • Mandatory enforcement of 15 USC and the civil rights of action for individual consumers against medical providers for price-fixing, collusion and similar offenses begins.  Note that providers who collude or attempt to defraud Treasury and allegedly low-income customers claiming indigence (who really aren't) are subject to mandatory prosecution and punishment under the Bill.

And.... it's done.

The medical scam has ended.

There are no more Federal Deficits; in fact, we run a perpetual budget surplus and begin paying down the national debt.

Your standard of living starts going up every year even without a raise by about 1% each and every year instead of going down as it does today.

We no longer pay for illegal immigrant medical care at all from public funds.

You get a price that is the same as everyone else for the same good or service in the medical field just as you do at the grocery store, the gas station and the local restaurant.  The outrageous price discrimination (sometimes as much as 10, 20 or even 100x or more) served up on some people -- discrimination that usually bankrupts the consumer in question -- ends permanently.

You know exactly how much you will be billed for a medical procedure, drug or device before you choose to undergo that procedure or accept the treatment.  Your insurance company, if you have one, will have to make available what they will pay and the hospital, doctor or pharmacist must tell you what they will charge.  You will thus know what the total cost to you will be -- before you sign a consent form or have a procedure done.

If you get an infection from a hospital you cannot be billed for the drugs and time to treat that which they gave you due to their incompetence.  That risk and cost is finally on them, which will drive innovation and greater care to prevent such infections that harm and even kill Americans today.

If you can't pay you will still be treated and can still choose your doctor, but you will be responsible to cover the (much more-reasonable) bill if you become able to pay it in the future.  This will permanently put an end to the practice of poor people using the ER like a doctor's office since this sort of abuse will no longer be advantageous compared against going to a regular physician.

Drug prices fall in the United States by at least half (and more likely by 80% or more on an average basis) and for those with chronic diseases that have been sucking down drugs and procedures while refusing to make simple, zero-cost lifestyle changes they finally have a strong incentive to both do so and have their health improve materially at the same time.

There will be no more $300,000 snake bites, $150,000 scorpion stings and $1,000-per-stitch fees that get lumped on you without any way to prevent them when something bad and random happens.  Any medical provider who tries it will find their bill void and they will be prosecuted for fraud.

Obesity and diabetes incidence falls dramatically since it is now strongly in everyone's best interest to practice simple changes in their lifestyle.  An epidemic has broken out -- of people having their pants fall off.  It's a good epidemic and America is noted and lauded as being the first nation to have reversed the increasing rate of obesity and Type II diabetes.

The nation becomes far more productive as the cost of employing someone drops by a solid 15% and America becomes the place to put a multi-national business.  In short labor expense drops tremendously and productivity soars.

If you're not a currently-overpaid administrator you get a raise; for a typical median family it will be about 10% immediately as your employer's cost of having you on staff will drop by at least that amount.  For the average family of four you will see, net of your medical expenses, roughly $7,000 richer in cash spending power after tax each and every year.

Those who are currently-overpaid administrators in health care will find jobs in other sectors.  It may take a while but it will happen, as the economy comes roaring back with the newfound efficiency and productivity improvement from deleting the fraud currently consuming almost one dollar in five.

State and local pensions and budgets stabilize and, over time, taxes come down at the state and local level as the levies put in place to try to stay ahead of the pension destruction are no longer necessary.  Specifically, property taxes decrease materially which will cause both the cost of owning a house and rents to decline.

Your car insurance gets cheaper as your liability policy, much of which covers medical expenses coming from accidents where you are at fault, along with uninsured motorist coverage, will decrease dramatically in cost.

Federal Spending will contract to something similar to this -- and I note that this chart presents a pessimistic estimate. We would almost-certainly do better than what is depicted here and, I remind you, both Seniors and indigent citizens would receive better care and more choice than they have now.

And we prevent this -- our federal debt -- from blowing up in our face as the CBO currently predicts -- an event that, if it occurs, will destroy the nation just a few years from now.

View this entry with comments (opens new window)