- Sep 30, 2003
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Many lefties supporting UHC have long argued that preventative medicine will save us money and help to pay for insuring the uninsured. Looks to be the exact opposite
Link to CBO letter in pdf
New England Journey of Medicine, American Diabetes Association, American Heart Association, and the American Cancer Society all had studies showing the same thing - increases in preventative medical care would cost more money in the long (and short) run.
Here's some of the language from the CBO letter to Congress explaining why it costs more:
Here's an article on it by Charles Krauthamer. I know many of you on the left don't like him, so just stick with the original letter from the CBO if you're so inclined:
Another (of many) good reasons to slow down on this. It takes time to seperate the wheat (truth) from the chaff (BS, and/or lies). I think we're still clealry in the process of sorting which is which.
How did Obama and the Dems get this so wrong given all the above reputable medical organizations finding to the contrary? Did those drafting the UHC proposal simply ignore it because it didn't fit their agenda and hope we'd never find out? Or, are they just incompetent? (Both?)
Fern
Link to CBO letter in pdf
New England Journey of Medicine, American Diabetes Association, American Heart Association, and the American Cancer Society all had studies showing the same thing - increases in preventative medical care would cost more money in the long (and short) run.
Here's some of the language from the CBO letter to Congress explaining why it costs more:
Preventive Medical Care
Preventive medical care includes services such as cancer screening, cholesterol management, and vaccines. In making its estimates of the budgetary effects of expanded governmental support for preventive care, CBO takes into account any
estimated savings that would result from greater use of such care as well as the estimated costs of that additional care. Although different types of preventive care have different effects on spending, the evidence suggests that for most preventive
services, expanded utilization leads to higher, not lower, medical spending overall.
That result may seem counterintuitive. For example, many observers point to cases in which a simple medical test, if given early enough, can reveal a condition that is treatable at a fraction of the cost of treating that same illness after it has
progressed. In such cases, an ounce of prevention improves health and reduces
spending?for that individual. But when analyzing the effects of preventive care
on total spending for health care, it is important to recognize that doctors do not
know beforehand which patients are going to develop costly illnesses. To avert
one case of acute illness, it is usually necessary to provide preventive care to
many patients, most of whom would not have suffered that illness anyway. Even when the unit cost of a particular preventive service is low, costs can accumulate
quickly when a large number of patients are treated preventively. Judging the
overall effect on medical spending requires analysts to calculate not just the
savings from the relatively few individuals who would avoid more expensive
treatment later, but also the costs for the many who would make greater use of
preventive care.2 As a result, preventive care can have the largest benefits relative
to costs when it is targeted at people who are most likely to suffer from a
particular medical problem; however, such targeting can be difficult because
preventive services are generally provided to patients who have the potential to
contract a given disease but have not yet shown symptoms of having it.
Researchers who have examined the effects of preventive care generally find that
the added costs of widespread use of preventive services tend to exceed the
savings from averted illness. An article published last year in the New England
Journal of Medicine provides a good summary of the available evidence on how
preventive care affects costs.3 After reviewing hundreds of previous studies of
preventive care, the authors report that slightly fewer than 20 percent of the
services that were examined save money, while the rest add to costs. Providing a
specific example of the benefits and costs of preventive care, another recent study
conducted by researchers from the American Diabetes Association, the American
Heart Association, and the American Cancer Society estimated the effects of
achieving widespread use of several highly recommended preventive measures
aimed at cardiovascular disease?such as monitoring blood pressure levels for
diabetics and cholesterol levels for individuals at high risk of heart disease and
using medications to reduce those levels.4 The researchers found that those steps
would substantially reduce the projected number of heart attacks and strokes that
occurred but would also increase total spending on medical care because the
ultimate savings would offset only about 10 percent of the costs of the preventive
services, on average. Of particular note, that study sought to capture both the
costs and benefits of providing preventive care over a 30-year period.
Here's an article on it by Charles Krauthamer. I know many of you on the left don't like him, so just stick with the original letter from the CBO if you're so inclined:
By Charles Krauthammer
In the 48 hours of June 15-16, President Obama lost the health-care debate. First, a letter from the Congressional Budget Office to Sen. Edward Kennedy reported that his health committee's reform bill would add $1 trillion in debt over the next decade. Then the CBO reported that the other Senate bill, being written by the Finance Committee, would add $1.6 trillion.
The central contradiction of Obamacare was fatally exposed: From his first address to Congress, Obama insisted on the dire need for restructuring the health-care system because out-of-control costs were bankrupting the Treasury and wrecking the U.S. economy - yet the Democrats' plans would make the problem worse.
Accordingly, Democrats have trotted out various tax proposals to close the gap. Obama's idea of limits on charitable and mortgage-interest deductions went nowhere, as did the House's income-tax surcharge on millionaires. And Obama dares not tax employer-provided health insurance because of his campaign pledge of no middle-class tax hikes.
Desperation time. What do you do? Sprinkle fairy dust on every health-care plan, and present your deus ex machina: prevention.
Free mammograms and diabetes tests and checkups for all, promise Democratic leaders Nancy Pelosi and Steny Hoyer, writing in USA Today. Prevention, they assure us, will not just make us healthier; it also "will save money."
Obama followed suit in his New Hampshire town hall meeting last week, touting prevention as amazingly dual-purpose: "It saves lives. It also saves money."
Reform proponents repeat this like a mantra. Because it seems so intuitive, it has become conventional wisdom. But like most conventional wisdom, it is wrong. Overall, preventive care increases medical costs.
This inconvenient truth comes, once again, from the CBO. In an Aug. 7 letter to Rep. Nathan Deal, CBO director Doug Elmendorf wrote: "Researchers who have examined the effects of preventive care generally find that the added costs of widespread use of preventive services tend to exceed the savings from averted illness."
How can that be? If you prevent somebody from getting a heart attack, aren't you necessarily saving money? The fallacy here is confusing the individual with society.
For the individual, catching something early generally reduces later spending for that condition. But, explained Elmendorf, we don't know in advance which patients are going to develop costly illnesses. To avert one case, "it is usually necessary to provide preventive care to many patients, most of whom would not have suffered that illness anyway." And this costs society money that would not have been spent otherwise.
Think of it this way: Assume that a screening test for disease X costs $500, and finding it early averts $10,000 of costly treatment at a later stage. Are you saving money? Well, if one in 10 of those who are screened tests positive, society is saving $5,000. But if only one in 100 would get that disease, society is shelling out $40,000 more than it would without the preventive care.
That's a hypothetical case. What's the actuality in the United States today? A study in the journal Circulation found that for cardiovascular diseases and diabetes, "if all the recommended prevention activities were applied with 100 percent success," the prevention would cost almost 10 times as much as the savings, increasing the country's total medical bill by 162 percent.
Elmendorf also cited a definitive assessment in the New England Journal of Medicine that reviewed hundreds of studies on preventive care and found that more than 80 percent of preventive measures added to medical costs.
This doesn't mean we shouldn't be preventing illness. Of course we should. But in medicine, as in life, there is no free lunch. The idea that prevention is somehow intrinsically economically different from treatment - that treatment increases costs and prevention lowers them - is simply nonsense.
Prevention is a wondrous good, but in the aggregate, it costs society money. Nothing wrong with that. That's the whole premise of medicine: Treating a heart attack or setting a broken leg also costs society. But we do it because it alleviates human suffering. Preventing a heart attack with statins, or breast cancer with mammograms, is costly. But we do it because it reduces human suffering.
However, prevention is not, as so widely advertised, healing on the cheap. It is not the magic bullet for health-care costs.
You will hear some variation of that claim a hundred times in the coming health-care debate. Whenever you do, remember: It's nonsense - empirically demonstrable and CBO-certified.
Another (of many) good reasons to slow down on this. It takes time to seperate the wheat (truth) from the chaff (BS, and/or lies). I think we're still clealry in the process of sorting which is which.
How did Obama and the Dems get this so wrong given all the above reputable medical organizations finding to the contrary? Did those drafting the UHC proposal simply ignore it because it didn't fit their agenda and hope we'd never find out? Or, are they just incompetent? (Both?)
Fern