Topic: General

Better than Medicaid Expansion: Missouri Senate Approves ‘Good Samaritan’ Law

Never mind Medicaid expansion. The Missouri Senate has approved a bill that would allow doctors to give free medical care to the poor. 

You wouldn’t think the government would have to pass a law to let doctors give free health care to the poor. Yet nearly every state prohibits out-of-state physicians and other clinicians from providing free charitable care to the poor unless those clinicians obtain a new medical license from that state.

In a forthcoming paper for the Cato Institute, I explain how medical licensing laws deny care to the poor, and how reforming those laws is a better alternative than Medicaid expansion:

Remote Area Medical has had to turn away patients or scrap clinics in places California, Florida, and Georgia. “Before Georgia told us to stop,” says founder Stan Brock, “we used to go down to southern Georgia and work with the Lions Club there treating patients.” After a tornado devastated Joplin, Missouri, Remote Area Medical arrived with a mobile eyeglass lab, yet state officials prohibited the visiting optometrists from giving away free glasses.

These stories belie the claim that government licensing of medical practitioners protects patients. Instead, they block access to care for the most vulnerable patients.

States should adopt “Good Samaritan” laws, like those enacted in Tennessee, Illinois, and Connecticut. Those states allow out-of-state-licensed clinicians to deliver free charitable care in their states without obtaining a new license. To protect patients, visiting clinicians are and should be subject to the licensing malpractice laws of the state in which they are practicing.

This week, Missouri’s Senate passed such a Good Samaritan law. (It even lets licensed veterinarians come to the state to provide free charitable care to animals.) The bill also provides an inducement to out-of-state clinicians by reducing their liability exposure for malpractice. It would be better if the state were to let doctors and patients choose their own malpractice liability rules via contract. Unlike ObamaCare’s massive Medicaid expansion, this bill would expand access to care for the poor without costing states or taxpayers a dime.

Here’s a video on Remote Area Medical, the good that it does–and the good that licensing laws prevent it from doing.

Even if you’re not ready to concede that medical licensing laws are harmful and should be repealed, you would have to admit it makes no sense for the government to block licensed doctors from treating the poor for free.

Florida House Committee, Speaker Reject ObamaCare’s Medicaid Expansion

On Monday, a select committee of the Florida House of Representatives rejected ObamaCare’s Medicaid expansion. Shortly thereafter, the speaker of the Florida House announced his opposition:

I am proud of the thoughtful, thorough and deliberative approach that our Select Committee took on the important issues related to Medicaid expansion and health exchanges. I received their recommendations and agree that expanding Medicaid and setting up a state exchange is not in the best interest of our state. We simply cannot count on the federal government to pay 100 percent of the cost for expansion. The facts show that healthcare costs will go up for many Floridians, while access to and quality of healthcare will go down. The ‘all or nothing’ approach that the Obama administration is offering will not work for our state. I know there will be continued discussion about this matter, and I look forward to exploring better policies for our state.

It looks like Medicaid expansion in Florida may not be the foregone conclusion that some people thought.

ObamaCare’s False Promise of Cost Savings: ACO Edition

One of ObamaCare’s selling points was that it would supposedly reduce costs through such innovations as “accountable care organizations” or ACOs. I have explained how ACOs are an innovation with many benefits, how markets developed ACOs decades before the government’s central planners caught on, and have predicted that ObamaCare’s centrally planned ACO program would fail to deliver on the promised savings. The reason is simple, and explained by industry expert Robert Laszewski:

Here’s a flash for the policy wonks pushing ACOs. They only work if the provider gets paid less for the same patient population. Why would they be dumb enough to voluntarily accept that outcome?

Turns out, health care providers are not that dumb. They have threatened to bolt ObamaCare’s ACO program in the past, and are doing so again [$] if Medicare tries to cut their pay:

One of CMS’ highest profile health care delivery reform initiatives is on rocky ground as most of the Pioneer ACOs are threatening to drop out of the demonstration if CMS makes them start meeting quality measures instead of merely requiring that they report the measures, according to a letter [$] obtained by Inside Health Policy…The Pioneer ACOs were supposed to be the few shining examples of organizations that could handle outcomes-based pay…

CMS often touts the high level of participation in ACOs, and it would seem that CMS has too much at stake to ignore the Pioneers’ requests and let the demo implode, a health care consultant says. However, it’s difficult to believe that this is the first time that the ACOs have brought these concerns to CMS – some innovation center officials come from the very organizations in the Pioneer demo – all of which indicates that negotiations have not gone well with the agency, the sources say. CMS could make changes to the quality metrics without announcing them in the Federal Register because the Pioneer ACOs are a demonstration, but the cat is out of the bag now, the sources note.

The Pioneer ACOs account for a little more than 30 of the some 250 ACOs in Medicare, and the Pioneers are supposed to be the most advanced, integrated systems of them all.

And thus ObamaCare’s false promise of cost savings comes into sharper focus. File this one under “markets are smart, government is stupid.”

Holman Jenkins: ObamaCare Is Part of the Insanity, Not Its Cure

I’m a week late on this, but Holman Jenkins has an excellent discussion of why health care costs and pricing (not the same thing!) are insane, and why ObamaCare will only make it worse:

Duke University’s Clark Havighurst [wrote] a brilliant 2002 article that describes the regulatory, legal and tax subsidies that deprive consumers of both the incentive and opportunity to demand value from medical providers. Americans end up with a “Hobson’s choice: either coverage for ‘Cadillac’ care or no health coverage at all.”

“The market failure most responsible for economic inefficiency in the health-care sector is not consumers’ ignorance about the quality of care,” Mr. Havighurst writes, “but rather their ignorance of the cost of care, which ensures that neither the choices they make in the marketplace nor the opinions they express in the political process reveal their true preferences.”

You might turn next to an equally fabulous 2001 article by Berkeley economist James C. Robinson, who shows how the “pernicious” doctrine that health care is different—that consumers must shut up, do as they’re told and be prepared to write a blank check—is used to “justify every inefficiency, idiosyncrasy, and interest-serving institution in the health care industry.”

Hospitals, insurers and other institutions involved in health care may battle over available dollars, but they also share an interest in increasing the nation’s resources being diverted into health care—which is exactly what happens when costs are hidden from those who pay them.

Put aside whether President Obama could have pushed real reform if he wanted to. ObamaCare as it emerged from Congress fulfills the insight that any highly regulated system ends up benefiting those with influence, i.e., health-care providers and high-end customers, not those of modest means.

What are ObamaCare’s mandates on individuals and employers except an attempt to force back into the insurance market those who have been priced out by previous “reforms” so their money can be used to prop up a system of gold-plated coverage that mostly benefits those in the highest tax brackets? What are ObamaCare’s minimum coverage standards except a requirement that these customers buy more costly coverage than they would choose for themselves so their money can be used for somebody else?

I include a lengthy excerpt from Robinson’s excellent article in my chapter for the Encyclopedia of Libertarianism.

Letter to the WSJ: Armen Alchian’s Wise Economics

My letter to the editor was published in today’s Wall Street Journal. In response to the obituary of Prof. Alchian, the WSJ published on 20 February 2013, I wrote the following:

David R. Henderson’s obituary of the great economist and pedagogue Armen Alchian (“An Economist Who Made the Science Less Dismal,” Feb. 20) brings back fond memories from the summer of 1966, when I was one of Prof. Alchian’s students.

One of the many take-aways from Alchian’s 1966 lectures was his “95% Rule”—95% of what you read in professional journals that passes for economics is either wrong or irrelevant. Over the years I have verified this and regularly conveyed Alchian’s rule to my students.

Prof. Steve H. Hanke

The Johns Hopkins University

Baltimore

Prof. Alchian met his maker on 19 February 2013. He was 98 years old.

Google Illuminates the Shadowy World of National Security Letters

In a pretty much unprecedented move, Google today announced that it was expanding its regular “Transparency Report” to include some very general information about government demands for user information using National Security Letters, which can be issued by the head of any of 56 FBI field offices without judicial approval or supervision. Recipients of NSLs are typically forbidden from ever revealing even the existence of the request, and therefore not included in the company’s general tally of government surveillance requests. Instead of disclosing specific numbers of NSL requests, then, Google is publishing a wide range indicating the rough volume of requests they get each year, and how many users are affected. Broad as these ranges are, there’s some interesting points to be gleaned here:

It’s illuminating to compare the minimum number of users affected by NSLs each year to the numbers we find in the government’s official annual reports. In 2011—the last year for which we have a tally—the Justice Department acknowledged issuing 16,511 NSLs seeking information about U.S. persons, with a total of 7,201 Americans’ information thus obtained. That’s actually down from a staggering 14,212 Americans whose information DOJ reported obtaining via NSL the previous year. Remember, this total includes National Security Letters issued not just to all telecommunications providers—including online services like Google, broadband Internet companies, and cell phone carriers—but also “financial institutions,” which are defined broadly to include a vast array of businesses beyond such obvious candidates as banks and credit card companies.

What ought to leap out at you here is the magnitude of Google’s tally relative to that total: They got requests affecting at least 1,000 users in a year when DOJ reports just over 7,000 Americans affected by all NSLs—and it seems impossible that Google could account for anywhere remotely near a seventh of all NSL requests. Google, of course, is not limiting their tally to requests for information about Americans, which may explain part of the gap—but we know that, at least of a few years ago, the substantial majority of NSLs targeted Americans, and the proportion of the total targeting Americans was increasing year after year. As of 2006, for instance, 57 percent of NSL requests were for information about U.S. persons. So even if we reduce Google’s minimum proportionately, that seems awfully high.

There’s a simple enough explanation for this apparent discrepancy: The numbers DOJ reports each year explicitly exclude NSL requests for “basic subscriber information,” meaning the “name, address, and length of service” associated with an account, and only count more expansive requests that also demand more detailed “electronic communications transactional records” that are “parallel to” the “toll billing records” maintained by traditional phone companies. I’ll get back to what that means in a second. But the obvious inference from comparing these numbers, unless Google gets a completely implausibly disproportionate percentage of total NSLs, is that the overwhelming majority of NSLs are just such “basic subscriber information” requests, and that the total number of Americans affected by all NSLs is thus vastly, vastly larger than the official numbers would suggest.

The rationale for not counting such “basic subscriber information” requests—beyond a desire not to terrify Americans by exposing the true magnitude of government surveillance—is presumably that these are so limited in scope that they don’t pose the same kind of civil liberties concerns as more extensive data requests. But this may not really be the case when you think about how we use the Internet in practice: Many people, after all, go online to engage in anonymous speech. In those cases, the contents of a person’s communications may be public (or at least widely shared), and what’s sensitive and private is the identity of the person tied to a particular account. (The first step in the FBI investigation that ultimately brought down CIA chief David Petraeus, recall, was stripping away the digital anonymity of his biographer and lover, Paula Broadwell, by linking a pseudonymous e-mail address to her primary Google account.) Indeed, that seems to be the primary reason one would issue such a “basic subscriber information” request to an entity like Google: To effectively de-anonymize the otherwise unknown user of a particular account. Insofar as the right to both speak and read or recieve information anonymously has long been recognized by the Supreme Court as a component of our basic First Amendment freedoms, even these relatively limited requests may indeed have important implications for our civil liberties. And Google’s numbers, imprecise as they are, very strongly suggest that such requests are issued in far higher numbers than had previously been recognized.

The other interesting tidbit to come from Google today is their expanded FAQ detailing what kinds of information can be obtained under NSLs:

Under the Electronic Communications Privacy Act (ECPA) 18 U.S.C. section 2709, the FBI can seek “the name, address, length of service, and local and long distance toll billing records” of a subscriber to a wire or electronic communications service. The FBI can’t use NSLs to obtain anything else from Google, such as Gmail content, search queries, YouTube videos or user IP addresses.

For a long time, the FBI operated on the assumption that NSLs could be used broadly to obtain any “electronic communications transactional records.” But in a 2008 memorandum, the Office of Legal Counsel rejected that interpretation, holding that NSL authority “reaches only those categories of information parallel to subscriber information and toll billing records for ordinary telephone service.” Just what that means, of course, is fairly opaque—but I think most observers had supposed, as I had, that it encompassed user IP addresses. Since these can be crucial to linking a wide array of online activity to a particular user, their exclusion would somewhat limit the potential of NSLs to undermine Internet anonymity. Whether IPs are covered, however, may well depend on the specific service in question—and it is not at all clear whether other providers will disclose IP addresses in response to NSLs.

Of course, what Google does not specify clearly is just what information does fall into the category of “toll billing records.” In all likelihood, however, it covers the equivalent of the kind of information about who is communicating with whom that might be found on a phone bill—such as a list of all the people with whom you exchange e-mails or Gchat instant messages, though again, given differences in how people use the Internet versus traditional phone service, such lists are likely to be substantially more revealing than any phone bill.

ObamaCare Debate Challenge: Lawrence Wasden Edition

Congress empowered states to block major provisions of ObamaCare, including its subsidies and employer mandate. All states need do to is refuse to create a health insurance “exchange.” (And a whopping 34 states, accounting for two-thirds of the U.S. population, have done just that.)

Supporters of the law are doing their level best to deny what the law says. It has now been one full month since I challenged anyone and everyone to debate with me the powers Congress gave states to block these and other parts of the law. My debate-challenge video (embedded below) has nearly 3,000 views on YouTube. And how many brave ObamaCare supporters have accepted my challenge? Zero.

The latest to deny what the law says is Idaho Attorney General Lawrence Wasden, who has issued an opinion that Congress did not give Idaho these powers. So I hereby issue my challenge directly to Wasden, or any member of his staff, or his entire staff: I say you are misreading the law, and doing Idaho legislators, employers, and taxpayers a great disservice. So let’s have a debate over whether Congress allows Idaho to block ObamaCare’s employer mandate, and whether you are accurately portraying the law to Idaho legislators. 

Update: Washington & Lee University law professor Timothy Jost protests that he debated this issue with both Jonathan Adler and me back in October 2012. True enough, Jost is the only person who has agreed to debate this issue with us live. Here’s the video of that debate. Decide for yourself who bested whom. I meant my “zero” count to be prospective, and would be happy to debate Jost again.