More evidence rolls in: low-carb and Mediterranean diets beat out traditional low-fat diets in a new study [gated].
A liberal supports Health Savings Accounts, urges Obama to do the same [link].
Tucked into the Medicare bill: special interest goodies for drug companies and durable equipment providers [link].
Read [here] about 130,000 surgical errors committed in the British National Health Service, aka "the envy of the world."
Here is more on the enormous financial waste in purchasing medical equipment in Medicare, posted as a comment by Greg Scandlen:
The House and Senate both overrode President Bush's veto of the Medicare "SGR fix" by overwhelming margins, delaying the planned cut in physician fees for 18 months. But the bill also killed a new approach to the way Medicare pays for medical equipment that would have saved the program billions of dollars at no loss to beneficiaries.
Secretary Leavitt writes that CMS instituted a competitive bidding process in ten locations around the country. "Unsurprisingly, the bids came in substantially below what Medicare pays, on average 26% below. These new prices took effect on July 1, benefiting taxpayers and patients." Unfortunately, the suppliers who lost out on the bids engaged in a ferocious lobbying campaign and got the program killed in the new legislation.  Wall Street Journal.
Forbes magazine ran an Associated Press story on the issue. The article points out that beneficiaries would benefit from reduced copays. "In the Miami area, for example, a standard power wheelchair that cost Medicare $4,024 last week will cost an estimated $2,817 under the new system. The cost for someone paying the 20 percent copay would drop from $805 to $563."
Officials also say fewer firms will mean less potential for fraud. On Wednesday, the U.S. attorney in Miami, R. Alexander Acosta, announced the guilty pleas of three people involved in a $148.5 million fraud scheme related to the type of medical equipment covered by the new system."
But it goes on to say, "The American Association for Homecare, which represents the businesses that sell the type of equipment the government is slashing prices on, calls the changes "a train wreck." Why? The article provides an answer."Rob Brant, owner of City Medical Services in North Miami Beach, Fla., was one of the losers. His seven-person company gets about 80 percent of its business from Medicare patients and didn't make the cut in the new bidding process. 'I'm in very big trouble,' he said." Forbes Magazine.
And so it goes in Washington these days. If your firm is over-priced and inefficient, hire a lobbyist to keep you in business anyway. In fact, that is far more important than delivering value to your customers.
Strange that the Democrats were so anxious to pass the Medicare bill since it cut benefits for seniors. See Alex Tabarrok’s post today.