Cut Healthcare Spending by 50%?
Robert Hanson suggests that we cut our healthcare spending by up to 50%. Why?
Am I being too allegorical? Then let me speak plainly: our 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.
So I want to say loudly and clearly what has yet to be said loudly and clearly enough: In the aggregate, variations in medical spending usually show no statistically significant medical effect on health. (At least they do not in studies with enough good controls.) It has long been nearly a consensus among those who have reviewed the relevant studies that differences in aggregate medical spending show little relation to differences in health, compared to other factors like exercise or diet. I not only want to make this point clearly; I want to dare other health policy experts to either publicly agree or disagree with this claim and its apparent policy implications.
How much could we cut? For the U.S. it seems reasonable to project the 30% cut in the RAND results to a 50% cut, since the U.S. spends so much more than other nations without obvious extra health gains. I thus claim: we could cut U.S. medical spending in half without substantial net health costs. This would give us the equivalent of an 8% pay raise.
As Hanson notes, his recommendations are not likely to be implemented soon -- or at all. So how can you benefit yourself?
Do you have little voice in health policy or research? Then at least you can change your own medical behavior: if you would not pay for medicine out of your own pocket, then don't bother to go when others offer to pay; the RAND experiment strongly suggests that on average such medicine is as likely to hurt as to help.
If this intrigues you, if you find yourself saying "It can't be true", then do go read the full essay. I just pulled four paragraphs out of a much, much longer argument.
He really does believe that more medicine is as likely to hurt you as it is to help you. Doctors make mistakes, just like everyone else. The best way to reduce your risk of mistakes is to reduce your exposure to hospitals, clinics, and medical professionals. QED.
This entry was tagged. Healthcare Policy Robert Hanson Spending