Eric Boehm: Why Is American Health Care So Dysfunctional?
Sep 4, 2024
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In this discussion, Eric Boehm, a reporter and the host of the podcast Why We Can't Have Nice Things, delves into the dysfunctionality of American healthcare. He examines how regulations, like certificate of need laws, inflate costs and limit access, and critiques failed government interventions like Obamacare. Boehm highlights Mark Cuban's Cost Plus Drugs, aimed at improving drug affordability. He also addresses the barriers faced by telemedicine and the dire consequences of current organ donation policies, advocating for significant reforms in the healthcare system.
Regulatory barriers in American healthcare, like certificate of need laws, hinder competition and inflate costs for consumers and providers.
The historical context of healthcare financing, particularly the introduction of income tax, has significantly distanced consumers from accountability in their healthcare expenditures.
Mark Cuban’s Cost Plus Drugs exemplifies a disruptive approach in pharmaceuticals, promoting transparency and lower prices by cutting out intermediaries.
Deep dives
Exploration of Healthcare Regulations
The podcast delves into how often overlooked healthcare regulations significantly impact the accessibility and cost of medical care. It identifies various regulations that create barriers for both consumers and providers, leading to increased expenses and inefficiencies in the system. The conversation highlights the role of cronyism, where businesses seek advantages not through competition but by leveraging favorable policies. This discussion sets the stage for understanding how other episodes will explore the consequences of these regulatory structures on healthcare delivery.
The Consequences of Historical Policies
A key point raised in the episode is the historical context underlying the current state of healthcare in America. The discussion references the creation of the income tax as a pivotal moment that reshaped the healthcare financing landscape, leading to a disconnect between consumers and their healthcare expenditures. It emphasizes the substantial amount of government funding in healthcare, which further removes consumers from price sensitivity, thereby enabling rising costs without direct accountability. This disconnect illustrates a critical flaw in the healthcare system that contributes to widespread dissatisfaction.
Innovative Solutions by Mark Cuban
An exciting development discussed is Mark Cuban’s venture, Cost Plus Drugs, which aims to disrupt the pharmaceutical market by providing direct-to-consumer pricing. This service allows individuals to purchase prescription medications at significantly lower prices by cutting out intermediaries and promoting transparency in healthcare costs. Highlighting specific examples, the podcast notes Cuban's approach as a solution to the opaque pricing structures traditionally seen in the pharmaceutical industry. The potential impact of this model could reshape how consumers access medication and empower them with better pricing awareness.
Challenges to New Healthcare Facilities
The episode examines the struggles of healthcare entrepreneur Katie Chubb, who faced significant obstacles in establishing a new birthing center due to certificate of need laws in Georgia. These laws require state approval for new healthcare facilities, often resulting in established providers stifling competition to protect their interests. The discussion underscores the detrimental effects of such regulations on innovation and access to care, particularly in areas with limited options for expectant mothers. This narrative serves as a poignant example of how regulatory structures can hinder the provision of necessary services in healthcare.
Regulatory Barriers in Telemedicine
The podcast highlights the regulatory challenges that persist in telemedicine, particularly following the COVID-19 pandemic which initially relaxed many restrictions. It elaborates on how certain state policies prevent out-of-state doctors from treating patients via telehealth, despite the effectiveness and necessity of virtual consultations. This limitation is illustrated through the experience of pediatric oncologist Dr. Shannon McDonald, who faces hurdles in providing follow-up care to patients living outside her state. The discussion suggests that these outdated regulations not only inhibit access to critical care but also threaten the continuity of treatment essential for patient recovery.
Today's guest is Reason'sEric Boehm, a reporter and the host of the podcast Why We Can't Have Nice Things. The first season of the podcast exposed how little-understood trade policies and regulations screwed with the pricing and availability of everything from baby formula to women's underwear to frozen chicken.
The new season focuses on laws and policies that screw up the supply and costs of health care. It debuts on Thursday, September 5, with the first episode featuring billionaire Mark Cuban talking about his company Cost Plus Drugs, which sells prescription drugs directly to consumers at super-low prices. Coming episodes cover how "certificate of need" laws increase the price and reduce the availability of hospital beds, why bans on organ donor compensation cause the death of thousands every year, how restrictions on telemedicine hurt patients with no gain in safety, and how the Food and Drug Administration and Drug Enforcement Administration make legal pharmaceuticals like Adderall tougher and tougher to get.
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