Damnit, Stop Lying On Health Care!
The Market Ticker ® - Commentary on The Capital Markets
Posted 2012-08-27 18:28
by Karl Denninger
in Health Reform
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Damnit, Stop Lying On Health Care!
 

I'm tired of this crap.

Look, I've said all alone (including in my book, Leverage, which you can find to the right if you haven't read it -- and you should) that the biggest issue we face is health care cost, and the drivers are cost-shifting and monopoly protections which exist only because of government.

We're all being jacked around by the politicians arguing over "Obamacare", "Romneycare", "Death Panels" and similar.

Nobody is talking about EMTALA, nobody is talking about Juanita the illegal Mexican who comes into this country 7-1/2 months pregnant, drug and alcohol-addicted with no money or insurance and pops out a $2+ million NICU bill, and nobody is talking about the state CON jobs.

Yes, CON.  As in "Certificate of Need", otherwise known as a gigantic CON, that is, swindle that is shoved down your throat.

Look it up folks.  Tennessee is one of many examples.  Want to open an MRI center?  You need a license to do so.  To get that license you must convince a state panel that there is an unmet need for that service.  On the board that makes the decision are a majority of entities that want prices high, not low -- hospitals, care providers, etc. 

The only "need" one should have to open a hospital, MRI center, surgery center or similar is the desire to make a profit!  That's called competition and it drives down costs.  It is what Romney, Obama and Johnson all claim they will provide with their health programs.

They're all lying through their teeth.  None of them intend to do a damn thing about these "Certificate of Need" programs that prevent you from opening up a medical facility and challenging the existing providers by undercutting their prices.

These laws came into place due to Federal legislation in 1974.  That law was repealed in 1987.  Yet 36 states retain these laws, and even those allegedly without them in fact have de-facto means of controlling the building and provision of health services anyway through various licensing requirements for individual facilities.

These sorts of licensing systems are directly anti-competitive. 

When I ran MCSNet the only thing I needed to do to provide Internet service was have capital, brains and balls.  There were over 100 competitors in our local market by the time I sold the company.  That is, you could buy Internet service from one hundred companies in the greater Chicago area.  If you didn't like me, you could buy from any one of 99 other people.  If you didn't them, you could buy from me.  Competition meant that we had to continually innovate both in price and service or we'd soon be out of business.

That's how it should be.

So why is it that none of these three clown-car brigades will talk about this part of the problem?

Yeah, you got it -- like all of the other special government protections like prohibitions on re-importation of drugs and devices, forced cost-shifting by allowing providers to bill you different amounts of money depending only on how you pay (unlawful in virtually every other business) and more none of the Presidential candidates has any interest whatsoever in actually addressing the problems with medical cost escalation.

They're all lying to you.

Period.

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Soros
Posts: 3119
Incept: 2007-08-31

La La Land
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Here's a little bit of information regarding a recent lawsuit in Virginia over CONs but I wonder if there was anything in the Obamacare bill that relates to this aspect of medical care?

http://www.ama-assn.org/amednews/2012/06....

Also, here is a quite a comprehensive index of CON websites by state,

http://www.ncsl.org/issues-research/heal....

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So long and thanks for all the fish.

Vicious_cycle
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Chardon, OH
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bilge

Sparticlebrane
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Banned
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Why the hell do they need "permission" to open an MRI center?
Genesis
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Admin A True American Patriot!
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Because you LET the State pass laws requiring it!

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Xqqme
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Ohio
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Political interference with the actuarial treatment of risk has converted insurance into semi-gov't, fascist social welfare enterprise.
Thomas Sowell
(Of course, the politicians were influenced by the lobbyists. And the folks are being taught to believe that 'health care is a right'...and round and round we go )
Mortgageguymn
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North Coast
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Had a client once who had gotten a shard of steel in his eyeball in some kind of industrial accident. Surprisingly, it didn't affect his vision, though. Later, he had to have an MRI for something totally unrelated. He brought up the steel sliver in his eye, but the technicians brushed it off. Apparently the magnets in the MRI caused the steel shard to tear through his optic nerve, blinding him in that eye.

I would think that licensing MRI operations would make sense to reduce the odds of that kind of idiocy. Licensing, but not limiting the overall number of MRI's.

Also, this partially blinded guy's then-wife was a real skank who used to pick up guys at the bar and bone 'em in their marital house - where they had kids. I don't know what that has to do with it, but I figured it needed mentioning. Ol' Blind-Eye Cuckold.
Crzymorse
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Maryland
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Health care is just a feeding frenzy. Karl is just scratching the surface. It only gets more horrifying. Wheelchair rentals (if you think a pentagon $500 screwdriver is offensive), bottled oxygen, car service, generic drug prices.
Advise01
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Tampa
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Certificate of Need aka CON to con the tax payers out of more money created by CONgress to limit growth and help keep cost lower.

Only in the free America it would make sense that the government would allow capitalism to run free and allow individuals and companies to compete to bring better pricing and innovation to the marketplace. Oh I am sorry CONgress does not let unfettered competition but believes limited growth and not allowing new business to enter the market would keep the cost lower.

http://www.ncsl.org/issues-research/heal....

Quote: “Certificate of Need (C.O.N.) programs are aimed at restraining health care facility costs and allowing coordinated planning of new services and construction.”

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"Few political gifts are more richly rewarded, than the ability to convince parasites that they are victims."
- Dr. Thomas Sowell
Ignorantsavage
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Mortgageguymn wrote..
I would think that licensing MRI operations would make sense to reduce the odds of that kind of idiocy
By that logic, there shouldn't be any motor vehicle accidents, since all motorists are supposed to be licensed.

Stop trying to fix government-caused problems with more government. Let the free market work both ways: let people accept more risk for less cost and stop protecting businesses from failure.

The proper free-market result from your story is that the MRI place ends up paying through the nose for the loss of the man's eye, and their business traffic slows way down or stops altogether as word gets out that those idiots at that one MRI place blinded that one guy.
Eaglewwit
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SoCal
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Karl all this country has left are lies. Don't expect it to stop anytime soon.
Mortgageguymn
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"By that logic, there shouldn't be any motor vehicle accidents, since all motorists are supposed to be licensed."

Not true. By that logic there should be fewer accidents. Which there probably are.
Ignorantsavage
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Mortgageguymn,

"Probably" is a loaded term when you're talking about directly infringing the rights of individuals in a society under the rule of law established to preserve individuals' rights.

By the same token that you use, it is my opinion that there are more motor vehicle collisions BECAUSE of drivers' licenses: since a driver like yourself assumes that 1. licensing of drivers reduces incidents of collisions and 2. that most other drivers have licenses, said driver is prone to drive with less caution than he might otherwise if he did not hold such assumptions, therefore being at greater risk of either hitting someone else or being hit himself.

End_the_bubbles
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Quote:
Because you LET the State pass laws requiring it!


And why the **** are people still following "laws"?


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In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet and rise in rebellion to overthrow their masters.
Ignorantsavage
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End_the_bubbles,

Many/most elected officials are not, leastwise not Constitutional laws.

The rest of the little people usually try to follow all laws (unConstitutional or not) simply because they are gunned down, otherwise. If they're not gunned down outright, they are treated harshly by a system that demands complete submission in lieu of a gunning down.
Mdporter
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San Jose, CA
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Because you LET the State pass laws requiring it!

I can't recall ever being given an opportunity to vote on something like that. If it was known in CA that the legislature was going to vote on it, I'd call and encourage a no vote. but since I am not giving $1,000,000 to the politician I'm sure my request would be ignored.
Marvinmartian
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Pasadena, CA
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certificate-of-need sounds like its out of Atlas Shrugged.

Another example of art imitating life,
Musicandnature
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Gold
NJ
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I used to think the 'big oil' lobby was bad- until began working in pharma and seeing/hearing healthcare stories there and here on TF.

Of course the politcons won't bring this up. They are just the lackeys for every industry imaginable; I suspect very few give a damn about 'the people.'
They should get sponsorship patches for their suits like Nascar vehicles so we know which companies they represent.
(credit to TF member mayorquimby for this thought from the bar I am borrowing, and washingtonsblog)
http://www.washingtonsblog.com/2011/10/s....

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Since it costs a lot to win, and even more to lose, You and me bound to spend some time wonder'n what to choose. Goes to show, you don't ever know, watch each card you play and play it slow...Wait until that deal come round, don't you let that deal go down, no no. Garcia/Hunter.

Hogman
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Damn Karl you had to get me started again

(thank you)
Asimov
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Karl: You're being redundant. They are politicians. Not only are they consummate actors, they make a profession out of lying.

Good ticker, btw.

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It's justifiably immoral to deal morally with an immoral entity.
If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
Joshua_d
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Lenoir, NC
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As far as people "letting" the state pass laws, I'm starting to tend to give people a lot more leeway and benefit of the doubt. Like someone mentioned above, I didn't let anyone pass anything.

This system has been created over 100+ years of little law after little law. Our political process was truly corrupted from the start because Man is corrupt. Adams passed the Alien and Sedition Act, right? Our political system, and every system connected to it has also become a sham and way for people to steal from other people.

But, we're just too dammed reliant on a paycheck, and as such, we just go on stealing from the next guy because everyone else does. The lying won't stop until people get desperate enough to start killing the liars. It's that simple. When the court system is corrupt and the law no longer applies, then people will take justice into their own hands. That guy who shot his boss in NY, that's just the start. We can expect more of that.

Tyranny never stops just because you stand up and say, "I don't like this any more. Please stop."


Critter
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iowa
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i have to believe the more predominant form of cost shifting which increases medical costs comes from the collection agencies who set the prices for premiums
for your coverage. that would be your health insurance company which charges and sets premiums according to what their actuaries tell them.

actuaries divide people into demographic groups in order to get the best bang for their buck. those wizards of math most likely are dividing and conquering mass profits according to laws such as mentioned in the ticker.
but even when not the fact is we are all made of the same junk with inury,and entropy ruling till our enivitable death. sharing the risk should not be divided into groups or qualify for a higher premium just because your kid may have parkinsons. i'd bet premiums would be diluted to less if figured "accross the board."

no different than our consent to pay higher taxes, health premiums being paid also comes from our consent. my bad, i guess to resent other's consent to allow 10 bucks an hour as their premium cost. but that 10 per hour comes from a global company where an actuary knows he can get it.
Ampsucker
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This same thing has been going on with nursing homes in Missouri for 20+ years. If you want to open a new residential care facility or nursing home, you have to prove to the State the local need for more beds.

I had always assumed this is because the State didn't want to have to manage/license/inspect more homes, not because it drove the price up. But, you are right Karl, that is exactly what it does. It stifles competition and protects the current providers from having to slash operating budgets.

It's like once you are in, you are part of the "dealer network" and can't undercut the competition.
Lowbeyond
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CO aka West NJ/East CA
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Quote:
It stifles competition and protects the current providers from having to slash operating budgets.

This is what the State does. Its not just medical centers. It is everything that has a permit attached. Taxis, bagel sales, coffee sales, hot dog stands, everything. Don't buy one and your neighbor pig will come and threaten to kill you.

Permits of course are just common sense, after all.

Fools

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Maybe it was a birdy bread-bomber from the future?!
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