Our daily response to some health-related items in the news.
Medicare reform: Obama vs. Ryan: Daniel Kessler and John Taylor argue in the WSJ that Ryan’s plan for Medicare is a better way forward than what Obama has proposed. In it they liken Ryan’s voucher plan to Medicare Part D and say that its advantages stem from a reliance on market prices. Comment: Actually, Ryan’s plan is not market-based enough in that it sets vouchers using an administrative, rather than a competitive process, as Part D does. Additionally, market-based need not preclude a public option (like FFS Medicare), which gets lower prices relative to plans in some areas due to market failures, chiefly high provider market power.
Perry urges Americans to take “personal responsibility” on health care, taxes: Stephanie Condon of CBS reports that Rick Perry prefers Americans have more “skin in the game,” to take on more of the cost of health care. Comment: A concern is that individuals can’t distinguish between effective and ineffective care. They will cut back indiscriminately. Lower income individuals will cut back much more.
(h/t Igor Volsky for flagging some of these stories.)