Healthcare reform is dead. Long live healthcare reform.
With no disrespect to Western European royalty customs intended,
attribute the former to the meaningful and the latter to the peripheral.
So what went wrong?
At association conferences and trade shows, such as AHRMM, IDN Summit,
World Research Group’s World Congress, and others, plenty of deep and
thoughtful discussions and debates about the issues took place. Too bad
none of that intelligence made it to Washington, whether elected,
appointed or merely hand-delivered by a handsomely paid lobbyist.
What Capitol Hill and The White House, as well as their teeming hordes
of apparently
clueless-to-real-life-among-mortals-at-the-base-of-Mount-Olympus advisers
seemed to forget or simply overlook is that with anything you’re going to
have winners and losers.
Even in the nonsensical political theater known as diplomacy where
compromise is king there are winners and losers because ultimately nobody
gets what they truly want. Healthcare is no exception.
Poke your finger into a well-inflated balloon and you create a latex
protuberance on the opposite side. Poke too hard and … well, you know the
consequences.
From an orthodox perspective, the supply chain works this way: The
sellers want to sell as much product as possible at the highest price to
generate the most amount of profit. The buyers want to buy as little
product as possible at the lowest possible price (free is good, too!) to
protect the bottom line and look like heroes. Typically, they meet
somewhere in the vast middle where everyone cheers, clinks goblets and
declares themselves the winners. Who said basic economics couldn’t be a
spectator sport?
Everyone between the two factions in the negotiations realm either
tries to satisfy one of the sides as best as possible or they merely get
in the way.
Because people get hurt or sick, providers consistently need to buy
products so they lose leverage there. But competition sans collusion can
help keep sellers "ethical" and "honest" so they lose leverage there.
In healthcare, or health insurance, reform, the fundamentals are
similar.
Obama, akin to the Clintons before him, wanted to insure the uninsured,
restrain spiraling healthcare costs as well as insurer and product
supplier profits and revenue, and increase healthcare access and process
efficiency. All at the same time. Had he been able to accomplish
all of this concurrently, he would have been regarded as a domestic
super-hero. But simple business logic turned out to be his green
kryptonite. Why? All of these sides represent competing interests so one
or more groups would have to win at another group’s expense. Shattering
goblets.
1. Require resistant citizens to buy insurance they don’t want or can’t
afford and you pad insurance company profits at the expense of those who
fear severe income loss or federal parenting-enforced behavioral changes.
2. Force insurance companies to cap or reduce their profits or pricing
via outlawing rejections based on pre-existing conditions or allowing
interstate enrollment and you run afoul of the capitalistic
free-enterprise economic system developed and managed by this democratic
republic of ours. Of course, you might argue that the automotive
manufacturer and banking/finance industry bailouts set the precedent. But
you also force these payers to restrict reimbursement and ration coverage.
Eliminate the insurance industry entirely or bestow "not-for-profit"
status on it only invites even more vitriolic pandemonium.
3. Cap or tax the sales of product manufacturers only forces them to
restrain research and development and hike prices, which ultimately are
passed onto the payers and citizens directly.
4. Encourage ordinary citizens (either through education or punitive
fees or taxes) to live more healthy lives as a way to avoid using
healthcare services theoretically prevents providers, payers and
manufacturers from making money. Plus, Americans see this as teenagers (or
toddlers) being told by an exasperated dad and mom to behave and obey.
So what’s the answer? Simple. Someone has to lose. Pick one. Let it
play out and then adjust the plans and processes from there. Pacifying
everyone merely keeps us sucking our pacifiers. Or thumbs. We know better
and can do better.