The death panel article was interesting. I would love to hear that explanained in a public forum, dying people are too expensive — so we’re going to fund our cuts by just pulling the plug on them.
In retail, sales people often try to up-sell when providing a good or service. Car dealers used to tack on Scotch Guard and a high-end wax sealer at $500 per car unless the customer objected. Fast food restaurants ask…”would you like fries with that?” in hopes they can boost their profit per sale. Recently, I paid $300 for a laser face resurfacing on Groupon awhile back and the receptionist made me sign a waiver stating “against medical advice,” I declined to purchase the $80 recovery kit that was nothing but cleanser and face cream.
In health care, up-selling (or up-coding) takes the form of doctors and hospitals trying to find the highest reimbursement code (often falsifying the diagnosis or providing unneeded services to justify the higher code). In a competitive market, this would not be a problem. I can refuse to pay $500 for a car with a $10 sealant package included. I can decline to have “fries with that.” I opted to stop at CVS for a $10 worth of face cream to sooth my laser- scorched face instead of paying $80. But, a senior isn’t in a position; nor do they probably care that the taxpayers are paying more for their office visit than they should.
Up-coding is a result of the perverse incentives of the current system. Doctors’ focus is diverted from patient care (and competing on service/price) to maximization against the reimbursement formula.
It’s a shame we’re now in the position where we’d rather have a government panel deciding on what is and isn’t cost efficient for keeping us alive, instead of valuing the life in the first place.
The death panel article was interesting. I would love to hear that explanained in a public forum, dying people are too expensive — so we’re going to fund our cuts by just pulling the plug on them.
Its nice to know that my medical information is not very safe from harm.
Up-coding costs Medicare $11 billion a year.
In retail, sales people often try to up-sell when providing a good or service. Car dealers used to tack on Scotch Guard and a high-end wax sealer at $500 per car unless the customer objected. Fast food restaurants ask…”would you like fries with that?” in hopes they can boost their profit per sale. Recently, I paid $300 for a laser face resurfacing on Groupon awhile back and the receptionist made me sign a waiver stating “against medical advice,” I declined to purchase the $80 recovery kit that was nothing but cleanser and face cream.
In health care, up-selling (or up-coding) takes the form of doctors and hospitals trying to find the highest reimbursement code (often falsifying the diagnosis or providing unneeded services to justify the higher code). In a competitive market, this would not be a problem. I can refuse to pay $500 for a car with a $10 sealant package included. I can decline to have “fries with that.” I opted to stop at CVS for a $10 worth of face cream to sooth my laser- scorched face instead of paying $80. But, a senior isn’t in a position; nor do they probably care that the taxpayers are paying more for their office visit than they should.
Upcoding is a serious problem that needs to be adressed.
Up-coding is a result of the perverse incentives of the current system. Doctors’ focus is diverted from patient care (and competing on service/price) to maximization against the reimbursement formula.
However the solution is complex.
It’s a shame we’re now in the position where we’d rather have a government panel deciding on what is and isn’t cost efficient for keeping us alive, instead of valuing the life in the first place.