Jun 12, 2018|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
It's our daily poll question had financial exchange showed does John. Vote your conscience there aren't just vote go to financial exchange oh does come in castaway. We have had a conversation regarding health care in quite some time Robert Frank is a. Professor at Cornell University. First paragraph of this recent article write it reads single Payer health care systems deliver better outcomes at much lower cost than those that rely primarily on private insurance. As we do in the United States and easy comparison professor would be Canada vs United States. Last time I checked their cost to about 55%. That of the United States. That's right and I think if you look at. Whole collection of advanced countries we spend about twice as. As much as average expenditure in those countries and yet we get. Health outcomes that are most important measures we care about that aren't good they do we know we've we really have a lot of kept up here. Counter intuitive we we spend twice as much and we get terrible results why will why it like where where's the money going. In and wire we are useful. What what are the main sources of the different is about that we pay for. Service providers in this country. The cost of procedures gears dramatically higher most of the places. That not just because doctors are paid more a little bit darker more it's also because. Insurance companies have a lot of experience mr. strait of expensive loaded on the better they're BitTorrent there's a whole lot of racquet or. Booting bill this aura of a competitive. Competitive hurly burly under our system. The single Payer systems. Are and much like the medic here there's been here done. Of the administrative cost burden Medicare's or about 2%. Ever used anywhere fifteen to 16%. Were for private insurance. We read a lot about fraud in Medicare age it would you have some concerns about that mean it seems like every day turn read papers. Some kind of Medicare fraud that we lost them. A we. That that's one of the knocks on on the Medicare system is the use all for. That is something that obviously would have to be worked out and that's a major Costa you know doctor frank does point out that. Doctors who worked for nonprofit Kristi just clinics like the Mayo Clinic. Earn considerably less than their feet for servers counterparts in the very happy with that he is back with us. Doctor. To doctor salaries compare in the United States to other countries like Canada and Norway Sweden. They're higher. But but we have many forms of practiced the Cleveland clinic either permanently. Mayo Clinic those are our examples. The quality of air in those facilities. Generally much higher measured by outcomes. More and more broad unity and mortality also patient satisfaction fire. For patients were on the those plans and and the doctors. Earn significantly lower salary than they do in the standard the reservist practiced but. They have many fewer hassles they have you know these are people who where in the medicine medicine because it was. Help get people well I think most doctors Goodman and the other reason but when you're distracted by going dispute also. Other Apple's. It's just not a satisfying career moon focused mainly helped the British. What about nurses to our nurses making more in the United States and making Canada. Yes I think they do all the arcade figured that compares to figure. For them. In drugs we know that we pay more for you know when you look at our drug costs compared to the rest of the world we pay. Significantly higher I think that's a. Yeah rationing factor too weird sort of our cost this the band used our drug prices now. Defenders of of our system will say that well. We're doing all the research and development at least of the breakthrough drug that could come along increased euros. Well American consumers are the ones were footing the bill for that others are writing. All of our best but there's there's. A grain of truth of that but I think. Potential for substantial. Gloria guard price and it is there and US system we wouldn't be giving up an integration of all lot of duplication and waste their regret that may do. Professor do you think we're headed towards a two tier system where you have a Canadian type system for the masses. And then the top one or 2% of the population maybe top 5%. In terms of wealth in the United States has a private system that they pay unit to pay for an addition to the public system. Well we do see that in and almost every other country that as a I universal. Coverage system provided by the public. And the people who have unlimited money. Like they do another domain wanna buy better than than most others and they've got the ability to do at the medical field to. How's that worked so yeah I don't I don't think there's any practical step. That the government could take that would. Make that illegal to do or or even whether would be desirable. How is that out though in in doctor how is that worked out in countries that have done. You know there there is some resentment I mean you're here is. The key point suppose there's a new technologies that. Expensive. Your kid has. Life threatening illness if you're rich you're Kim will be saved it or not Richard it's a look back at the very. Difficult scene to watch unfold in the public domain. And so the other obvious tension in that. You know my my biggest concern. Mr. frank is that that private system. Might end up being a whole lot bigger than we think in in a rich world to do country like this that's used to the system we have. I just wonder we got a two tiered system with maybe a fifth of the people. Going to that better more preferable system and everybody else getting the rest. You know Arctic. But public system if it were. Really substantially. Inferior to that. Expert here that you described would generate enormous pressure to spend more in the public building. I think that's not. The kind of inequality that people are worth. To live live comfortably amidst one thing to note that those rich guys are bigger bear true. And let someone else bigger gotten. We know that there are life saving treatments that that person NASDAQ that's cute you don't that the paired up bill put up with all. Forget professor thank you very much for joining us who appreciate it. Professor Robert Frank from Cornell joining us with his thoughts on single Payer. I you know when you look let's let's talk about the excess costs doctors nurses drugs and insurance companies. You take those four factors and you reduce the ball right. It take insurance companies like when you look you're insurance premium. Anywhere from fourteen to 18% is going to insurance that's and so if you're paying two grand a month the math. But again where the other senators were talking about 18% of the economy and you know righting the ship. To be very slow gradual and blues and will resisted tool you know we won't do the right thing to actually have to it's gonna take a while. And it's going to be he's getting to the point where it's cost prohibitive it you know we've pledging your employer you're you're you're an employer that your and you're pulling. Workers that make 20/20 five bucks an hour mean you have to spend an additional 25000 bucks a year in the health insurance yeah we're we're at a point now where something has to be done I I think what's gonna happen initially is an expansion of Medicare and we talked about instead of you know aged 65 maybe it's going to be buying an opportunity for people fifty and older. Think about our pierce yeah right now I mean how many times have you seen one of our peers. At fifty it and yeah exactly what you're witnessing how the unemployment rate improves dramatically. When you take the cost of insuring a fifty year old off the books of employers all the cells I am wants to keep. I think I wanna keep that guy around ya I think UCL all the big improvement in employment for people over age fifty if that was not an issue for employers.