California tries to rein in healthcare costs
January 26, 2020
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January 26, 2020
Kaiser Health News published a summary of legislative efforts in California to curb healthcare costs. One big idea is for the state to create its own private label and sell specific generics. Commentators seem to agree that this is unlikely to save the state substantial amounts of money, but might make a big different to individuals. Apparently, there is a bigger proposal underway in terms of creating a single drug market.
It's too early to tell whether these measures will actually come to fruition, and if so, whether they will be effective, and what side effects they will entail. However, if these efforts are successful, perhaps other states (and the federal government) would consider adopting similar measures.
January 18, 2020
The Washington Post published an opinion piece in which the author recounted her experience of receiving an emergency appendectomy. Unfortunately, she chose to go to a nearby hospital instead of one that was in her insurance's network. Consequently, she had a much larger bill to contend with.
The emergency nature of the procedure limited the author's options. What's surprising is the detail that the surgeon asked for the author's profession (and that of her husband) before announcing the price of the procedure. In other industries, variable pricing is allowed (e.g. the price one might be offered at a car dealership could depend on a variety of factors). In the context of emergency procedures, however, stories like this add fuel to a growing discontent with the healthcare industry. Much as there has been momentum against balance billing, I suspect that people will also push for pricing reform within healthcare.
January 12, 2020
In recognition of the effects of concentrated market power, Kaiser Health News reported on an agreement between Sutter Health and California, in which Sutter agreed to pay $575 million to settle an antitrust case. The agreement comes with certain stipulations, such as offering stand-alone pricing where insurers can choose specific hospitals, rather than being required to either consider all of Sutter as in-network, or none of their facilities.
In northern California, Sutter Health is a very large provider, having merged many previously separate healthcare facilities. Such concentration in one company can give that firm tremendous power over its suppliers and customers.
January 04, 2020
Kaiser Health News reported on legislation in Texas against surprise medical billing going into effect at the beginning of this year. Kaiser Health News called the legislation "one of the strongest laws in the nation against surprise medical bills."
The Texas Medical Board (made up of healthcare providers) drafted rules in respect to the legislation. The board took what was meant to be a narrow suggestion (patients selecting a specific out-of-network provider and signing a waiver to the legislation) and apparently proposed recommending that all non-emergency providers require patients to sign such a waiver, thus subverting the intent of the law. While such a move might be in the short-term financial interests of its members, the move undermines the credibility of the board, at least in terms of whatever general public interest it might have proclaimed.
December 25, 2019
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We wish you and your family a joyous time this season.