[O]ur main problem in health policy is a huge overemphasis on medicine. The U.S. spends one sixth of national income on medicine, more than on all manufacturing. But health policy experts know that we see at best only weak aggregate relations between health and medicine, in contrast to apparently strong aggregate relations between health and many other factors, such as exercise, diet, sleep, smoking, pollution, climate, and social status. Cutting half of medical spending would seem to cost little in health, and yet would free up vast resources for other health and utility gains. To their shame, health experts have not said this loudly and clearly enough.Hanson builds a good case against "wasteful" medical spending by citing a number of studies which suggest that there's a weak correlation between medical spending and longevity. I think his piece would be more complete, however, if elaborated on how we could more efficiently allocate our health care spending.
Thursday, September 13, 2007
Cut Medical Spending In Half
In a thought-provoking essay, Robin Hanson proposes that America cut its medical spending in half:
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4 comments:
Why not just "allocate our spending" by cutting spending in half, as I suggest? What was wrong with my suggestions to cut subsidies and perhaps even tax more?
Cool, Brian. you got the author of the piece to respond to your blog! That's almost as impressive as MY response;)
I think the basic issue at question is whether or not health care is a public service. If it's private--like buying a car or groceries, then let's keep it private and let the market set the price.
If it is public--and I firmly believe that it is--then it should be provided universally, much as education, security, and utilities are. This cannot be done without government as the payer/provider.
As to Mr. Hanson’s questions, there is nothing wrong with cutting subsidies, but what percentage of our health care spending results from those subsidies? I would imagine not a significant number, though I could be wrong. Using Hanson’s model to make any significant cuts in health care spending, it seems that you would need to convince a lot of people to make lifestyle changes – not a very easy thing to do.
Interesting to know.
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