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	<title>Comments on: Tom Vanderwell on moral hazard</title>
	<atom:link href="http://rc3.org/2008/07/22/tom-vanderwell-on-moral-hazard/feed/" rel="self" type="application/rss+xml" />
	<link>http://rc3.org/2008/07/22/tom-vanderwell-on-moral-hazard/</link>
	<description>Rafe Colburn on software development (and other topics)</description>
	<lastBuildDate>Mon, 21 May 2012 23:52:43 +0000</lastBuildDate>
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		<title>By: acm</title>
		<link>http://rc3.org/2008/07/22/tom-vanderwell-on-moral-hazard/comment-page-1/#comment-2914</link>
		<dc:creator>acm</dc:creator>
		<pubDate>Thu, 31 Jul 2008 13:52:22 +0000</pubDate>
		<guid isPermaLink="false">http://rc3.org/?p=8303#comment-2914</guid>
		<description>&lt;p&gt;Also, there&#039;s nothing there about the third case, which is having &lt;em&gt;no&lt;/em&gt; insurance.  At best, the lack of difference seen in the RAND study might indicate that co-pays are valuable, but they don&#039;t really say that universal healthcare is a bad idea, because they don&#039;t really address the case that can&#039;t afford a trip to the dentist (as well as food and rent) and thus risks death by sepsis (as happened a couple of times here in PA recently)...&lt;/p&gt;
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		<content:encoded><![CDATA[<p>Also, there&#8217;s nothing there about the third case, which is having <em>no</em> insurance.  At best, the lack of difference seen in the RAND study might indicate that co-pays are valuable, but they don&#8217;t really say that universal healthcare is a bad idea, because they don&#8217;t really address the case that can&#8217;t afford a trip to the dentist (as well as food and rent) and thus risks death by sepsis (as happened a couple of times here in PA recently)&#8230;</p>
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		<title>By: acm</title>
		<link>http://rc3.org/2008/07/22/tom-vanderwell-on-moral-hazard/comment-page-1/#comment-2913</link>
		<dc:creator>acm</dc:creator>
		<pubDate>Thu, 31 Jul 2008 13:49:03 +0000</pubDate>
		<guid isPermaLink="false">http://rc3.org/?p=8303#comment-2913</guid>
		<description>&lt;p&gt;I dunno, Thom -- a 10% reduced risk of dying among higher-risk patients doesn&#039;t seem like something one should disregard.  That&#039;s pretty significant, and certainly would be enough to change standard medical protocol...&lt;/p&gt;
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		<content:encoded><![CDATA[<p>I dunno, Thom &#8212; a 10% reduced risk of dying among higher-risk patients doesn&#8217;t seem like something one should disregard.  That&#8217;s pretty significant, and certainly would be enough to change standard medical protocol&#8230;</p>
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		<title>By: Thomas Brownback</title>
		<link>http://rc3.org/2008/07/22/tom-vanderwell-on-moral-hazard/comment-page-1/#comment-2891</link>
		<dc:creator>Thomas Brownback</dc:creator>
		<pubDate>Sat, 26 Jul 2008 00:56:54 +0000</pubDate>
		<guid isPermaLink="false">http://rc3.org/?p=8303#comment-2891</guid>
		<description>&lt;p&gt;While I loved the Vanderwell stuff, Gladwell, who I usually enjoy, failed to deliver for me here.&lt;/p&gt;

&lt;p&gt;In the course of Gladwell&#039;s argument, he cites the RAND study&#039;s findings that people with access to less health care suffer worse rates of hypertension. This example grossly misrepresented the RAND study, which principally concluded that access to more health care does not improve health outcomes.&lt;/p&gt;

&lt;p&gt;Now, Gladwell is right in one sense, blood pressure was one exception (vision was the other) across 30 measures. But finding p 0.03 in across so many measures is pretty well covered by chance.&lt;/p&gt;

&lt;p&gt;It really reads like Gladwell was data mining to flip the accepted result of this major study, which directly contradicts his point.&lt;/p&gt;

&lt;p&gt;Gladwell says the real problem is that we aren&#039;t very good at figuring out what health care is necessary and what care is frivolous. But even if that were true (despite RAND&#039;s findings), it cuts both ways, against Gladwell&#039;s argument as well as for it. It suggests that as you allow people more medical care, they don&#039;t just spend on necessary care first, they waste more on frivolous care at the same time.&lt;/p&gt;

&lt;p&gt;I think Gladwell&#039;s characterization of the research is wildly off the mark, but he&#039;s a smart guy and a clever writer, so let&#039;s suppose I&#039;m wrong. Even if Gladwell is right, we&#039;re still faced with a troubling dilemma, maybe best illustrated in the extreme: how many &quot;healing power of crystals&quot; sessions should we pay for if it gets one more person to get a colonoscopy?&lt;/p&gt;

&lt;p&gt;At best, Gladwell has just deemphasized moral hazard in the medical industry. At worst, Gladwell&#039;s academic integrity looks a little suspect.&lt;/p&gt;

&lt;p&gt;(Overcoming Bias had a piece on RAND &lt;a href=&quot;http://www.overcomingbias.com/2007/05/rand_health_ins.html&quot; rel=&quot;nofollow&quot;&gt;here&lt;/a&gt; which informed some of my conclusions.)&lt;/p&gt;
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		<content:encoded><![CDATA[<p>While I loved the Vanderwell stuff, Gladwell, who I usually enjoy, failed to deliver for me here.</p>

<p>In the course of Gladwell&#8217;s argument, he cites the RAND study&#8217;s findings that people with access to less health care suffer worse rates of hypertension. This example grossly misrepresented the RAND study, which principally concluded that access to more health care does not improve health outcomes.</p>

<p>Now, Gladwell is right in one sense, blood pressure was one exception (vision was the other) across 30 measures. But finding p 0.03 in across so many measures is pretty well covered by chance.</p>

<p>It really reads like Gladwell was data mining to flip the accepted result of this major study, which directly contradicts his point.</p>

<p>Gladwell says the real problem is that we aren&#8217;t very good at figuring out what health care is necessary and what care is frivolous. But even if that were true (despite RAND&#8217;s findings), it cuts both ways, against Gladwell&#8217;s argument as well as for it. It suggests that as you allow people more medical care, they don&#8217;t just spend on necessary care first, they waste more on frivolous care at the same time.</p>

<p>I think Gladwell&#8217;s characterization of the research is wildly off the mark, but he&#8217;s a smart guy and a clever writer, so let&#8217;s suppose I&#8217;m wrong. Even if Gladwell is right, we&#8217;re still faced with a troubling dilemma, maybe best illustrated in the extreme: how many &#8220;healing power of crystals&#8221; sessions should we pay for if it gets one more person to get a colonoscopy?</p>

<p>At best, Gladwell has just deemphasized moral hazard in the medical industry. At worst, Gladwell&#8217;s academic integrity looks a little suspect.</p>

<p>(Overcoming Bias had a piece on RAND <a href="http://www.overcomingbias.com/2007/05/rand_health_ins.html" rel="nofollow">here</a> which informed some of my conclusions.)</p>
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		<title>By: Thomas B.</title>
		<link>http://rc3.org/2008/07/22/tom-vanderwell-on-moral-hazard/comment-page-1/#comment-2890</link>
		<dc:creator>Thomas B.</dc:creator>
		<pubDate>Fri, 25 Jul 2008 23:48:06 +0000</pubDate>
		<guid isPermaLink="false">http://rc3.org/?p=8303#comment-2890</guid>
		<description>&lt;p&gt;I have thought that bailouts should be coupled with board expulsion, but he takes the insightful and necessary next step of hurting the investors as well.&lt;/p&gt;

&lt;p&gt;Nice find.&lt;/p&gt;
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		<content:encoded><![CDATA[<p>I have thought that bailouts should be coupled with board expulsion, but he takes the insightful and necessary next step of hurting the investors as well.</p>

<p>Nice find.</p>
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		<title>By: acm</title>
		<link>http://rc3.org/2008/07/22/tom-vanderwell-on-moral-hazard/comment-page-1/#comment-2884</link>
		<dc:creator>acm</dc:creator>
		<pubDate>Thu, 24 Jul 2008 14:43:32 +0000</pubDate>
		<guid isPermaLink="false">http://rc3.org/?p=8303#comment-2884</guid>
		<description>&lt;p&gt;the Gladwell link is awesome -- one of the most revealing pieces on health care I&#039;ve seen.  thanks for the link.&lt;/p&gt;
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		<content:encoded><![CDATA[<p>the Gladwell link is awesome &#8212; one of the most revealing pieces on health care I&#8217;ve seen.  thanks for the link.</p>
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