http://washingtonexaminer.com/romney-should-keep-focus-on-ipab/article/2510511/
Liberal fact-checkers have been working overtime to discredit Romney’s claim that this board will “ultimately tell patients what treatments they can receive.” PolitiFact, one self-appointed guardian of truth, rated Romney’s statement as “mostly false.” The board, it insisted, “can’t deny treatment” or “ration care” or “make health care decisions for individual Americans.” Rather it can only determine what doctors and hospitals are paid. Likewise, The Los Angeles Times maintained that the board could merely “recommend ways to reduce Medicare spending” – not cut benefits.
But the whole point of the board is to use price controls to discourage expensive treatments. Yes, it is possible that some good doctor will be willing to perform bypass surgeries for Medicare patients even when the board only allows, say, payment for aspirin. It’s also very unlikely. If the board decides to set payment for state-of-the-art dialysis at below cost, reasoning that the benefits of the procedure aren’t commensurate with the added expense, it isn’t rationing care directly. But it is indeed rationing care, because this would effectively consign patients to older treatments.
Before the recession, Medicare spending had been growing 2.6 percentage points faster than GDP. The program already pays out roughly $290 billion more in benefits than it receives in taxes, and it constitutes somewhere between $38.6 to $90 trillion in unfunded liabilities for the federal government.
The main reason for the government’s out-of-control Medicare spending is that Uncle Sam picks up most of the tab for seniors’ health care, giving them little incentive to curb consumption or shop for better prices. Instead of restoring this incentive, Congress has historically tried to curb spending by cutting reimbursement rates for providers.But this has repeatedly failed because providers are politically powerful. Every time automatic cuts have loomed, Congress has undone them by passing the so-called “doc fix.” ObamaCare tries to get around this democratic problem by shielding the IPAB from political accountability.
Liberal fact-checkers have been working overtime to discredit Romney’s claim that this board will “ultimately tell patients what treatments they can receive.” PolitiFact, one self-appointed guardian of truth, rated Romney’s statement as “mostly false.” The board, it insisted, “can’t deny treatment” or “ration care” or “make health care decisions for individual Americans.” Rather it can only determine what doctors and hospitals are paid. Likewise, The Los Angeles Times maintained that the board could merely “recommend ways to reduce Medicare spending” – not cut benefits.
But the whole point of the board is to use price controls to discourage expensive treatments. Yes, it is possible that some good doctor will be willing to perform bypass surgeries for Medicare patients even when the board only allows, say, payment for aspirin. It’s also very unlikely. If the board decides to set payment for state-of-the-art dialysis at below cost, reasoning that the benefits of the procedure aren’t commensurate with the added expense, it isn’t rationing care directly. But it is indeed rationing care, because this would effectively consign patients to older treatments.
Before the recession, Medicare spending had been growing 2.6 percentage points faster than GDP. The program already pays out roughly $290 billion more in benefits than it receives in taxes, and it constitutes somewhere between $38.6 to $90 trillion in unfunded liabilities for the federal government.
The main reason for the government’s out-of-control Medicare spending is that Uncle Sam picks up most of the tab for seniors’ health care, giving them little incentive to curb consumption or shop for better prices. Instead of restoring this incentive, Congress has historically tried to curb spending by cutting reimbursement rates for providers.But this has repeatedly failed because providers are politically powerful. Every time automatic cuts have loomed, Congress has undone them by passing the so-called “doc fix.” ObamaCare tries to get around this democratic problem by shielding the IPAB from political accountability.
