We study the trade-off between bureaucratic costs and reductions in moral hazard induced by managed care tools in healthcare…. Prior authorization reduces a drug’s utilization by 26.8%. Half of marginal beneficiaries are diverted to another related drug, while the other half are diverted to no drug. These policies reduced drug spending by $96 per beneficiary-year (3.6% of drug spending), while generating approximately $10 in paperwork costs. Revealed preference approaches suggest that the net cost savings exceed beneficiaries’ willingness to pay for foregone drugs.
Category: Consumer-Driven Health Care
Wednesday Links
- The future of telehealth: Just 6% of U.S. adults said they prefer a virtual-only care model. But 35% of consumers prefer a hybrid approach.
- The gender occupational fatal injuries gap: Should the government act to correct this?
- Biden administration air conditioner regs make purchase and repair more expensive – putting home owners and workers at greater risk during heat waves.
- Lack of DEI in opioid treatment: White adults were 14 times more likely to receive medicine than Black adults. Men had 6 times the likelihood as women.
Anything the government operates or subsidizes has exploding costs
Anything the government operates or subsidizes has exploding costs. So health care and education are the components of the economy with the steepest rise in prices over the last 25 years. Education is 75% run by the government and health care is 50% government.
Physicians’ Practices Vary: Some are Good, Some are Bad
I am (generally) a big fan of doctors experimenting with different forms of medical practices. Some doctors are sole proprietors and work mostly alone in their office. Years ago, I went to a doctor who did not accept insurance and would not make appointments. His office was small since he didn’t require a billing staff and was very efficient. His prices were transparent and quite low ($35 office call in 1993).
Another physician, this one from Northern Virginia, pioneered primary care consultations by telephone. Doctalker Family Medicine would do house calls, in-office visits and consultations by phone. Each service came with a different price tag. He did not accept insurance, but his office would help patients fill out an insurance claim form for a modest fee. Most of his consultations were by phone.