Tuesday, May 12, 2009

a good example




An article in today's Times-Union outlines a meeting between the medical industry and Barack Obama. The industry is going to promise to save the U.S. 2 trillion health care dollars over the next ten years......wow! The problem with this promise is it is a tongue-in-cheek promise. They say they will save health care 2 trillion dollars by decreasing price increases. The cost of health care has outpaced personal income growth for the past 40 years.

Socialized medicine is argued alot in politics, and I have recently had a couple front row seats. Try having a special needs child or a dying parent and the veil will be pulled back and expose the awful corruption underneath.

I have also known people overseas that had issues in places where National Healthcare is mandated.

Here's how it works in most free market Western style democracies: the poor unwashed have thier healthcare, which does drag down the standards and availability for the masses. But, for those with the capital, they buy 'supplemental' insurance, or in other cases, they leave thier country and find what they need elsewhere. My mother recalls how Canadians would come over to Montana to get Lasic Eye surgery, and all the American would cross over to but thier pharmaceuticals up there.

But, for those 'without', they get some basic care that is now not currently available..I wont argue this point, I have 'seen' it. There is a medical gap in this country, and I support Obama's efforts to correct the problem. Now, what will probably happen is he will overreach, but already the medical industry is leaving skids, because they know the jig is up.

I'd like to compare the possible problem with a free market approach..

Let's use Amusement Parks for example.

In Disneyworld, long lines have always been a problem, with waits of over an hour for the most basic rides. So, the geniuses @ Disney implemented the 'Fast Pass' system. This is essentially a giant computer network connected to the rides. Let's say you want to ride Space Mountain, but the wait is a hour long....You go up to the FP machine, and you ask for a pass. The FP comes out and says 'come back in one hour' and you walk up the exit ramp and onto the ride immediately. For the next hour, you go ride another ride with a smaller wait. This takes you ( and others ) out of the line for Space Mountain and shuttles you somewhere else, thus keeping the line from getting any longer, thus keeping the line shorter for all. Plus, it's 'free'. But you can only get a certain number of FP's. You cant go get one FP from Space Mountain, and then walk over and get one for Dumbo, it is rationed. It works somewhat, it's a little hit or miss, but it is effective for those who choose to use it.

At Six Flags, they have a 'Flash Pass'. You must pay extra for it. For say, 45$ more you get a LED display machine that tells you the current 'wait time' for the rides. You can 'reserve' your seat on the ride, but basically you are paying for the right not to stand in the line. If the ride says 30 minute wait on your LED, then you go play a game, ride a shorter ride, and then come back and walk up the exit onto your ride...

BUT...For 95$, you get the 'Gold' Flash Pass. This basically means you dont wait for any of the rides. You punch in your ride ( say, the Scream Machine ) and it says '5 minutes, come to the exit'. And on you go. You walk right past the poor suckers sweating in the line and ride your ride in minutes. It is terribly effective. There is no small amount of envy from the cheap bastards as you casually stroll right onto your ride!

Our current medical system is based on the old Disney method: and it is broken. Even if you have the $$$, in many cases you cant get the care you want or need no matter what. And I'm not going to debate this: I've seen it.

Obama and his ilk want us to move to a 'Fast Pass' type system, and like Great Britain, eventually, if you have the capital, you can get yourself a Gold Flash Pass and get what you want. But for that to work, everyone has to get on board and use the fast pass, and also pay a little more for the entrance ticket.

The problems with socialized medicine falls when freedoms are removed: when people are forbidden to go out of network for care..This causes logjams that cripple the industry as a whole.

So, here's some rare Kudo's to Obama. Already the healthcare providers are scared, and now 'all of a sudden' can make concessions. This bring up an uncomfortable question: suppose McCain won? Do you think these 'concessions' would have been made? Of course not.

Class dismissed!!

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