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Medicare a Price Control Fix

Medicare-for-All has become a deciding factor in the upcoming 2020 election. Its advocates, who are correctly seeking universal healthcare coverage, fail to see the basic premise that Medicare is a Price Control Fix.

Failing to understand the payment methodology for Medicare under RBRVS (Resource Based Relative Value Scale) leads many advocates to believe expanding Medicare would be a good deal.

Unfortunately the Medicare payment model has been adopted by many private insurance companies because of the great control it gives insurance executives to control physician payment and their own profit margin.

With 19% of U.S. GDP spent on healthcare, there is ample funding to provide universal healthcare coverage. As a matter of fact, there’s an abundance. Provided we as a society decide to address this question: How much money is enough for any given healthcare service?

The concept of value-based outcomes as outlined by Michael Porter in his book “Redefining Healthcare”provides a wise alternative premise.

In his book Porter provides a novel premise, which actually is known and used by anyone who is an educated consumer. That is to based the fair price we are willing to pay for a product or service on the quality we perceive, as well as, objective data that confirms our product choice is wise.

The current method to grade quality in healthcare services is based on the the economic concept that market competition will inspire competitors to innovate new ways to improve their products or to deliver a service.

As pointed out in some of my previous podcasts, nothing could be further from the truth in medicine. The Analysis of billing data tells nothing about the quality of medical care received, or even if it was helpful. Actually it doesn’t even reveal if the care was fraudulent of harmful.

Yet there is a much better way to evaluate medical care services based on the treatment result one obtains. The very same medical tests employed to diagnose an illness can be employed to measure health improvement based on treatment. Know Your Colors is based on such an objective method.

I hope that my viewers will take some time to review these two videos in My Med Tutor. The Part #1 video titled “Medicare-for-All — Now or Never,” explains the short comings of the Medicare RBRVS payment system. It also illustrates the political, academic and pharmaceutical influences that can pervert universal healthcare. Some of these schemes are discussed in some of my other podcasts.

Also please take the time to view this Part #2 video entitled “Medicare is a Price Control Fix.” in this video, we compare the fallacy of attempting to price control medical payments to the 1971 gas shortage experience for ten years when President Nixon employed Price Control on gasoline.

Again please take a look at the About section of this web page to better understand the premise of Know Your Colors.

Thank you and please share this blog, comment, and express your viewpoints, if we ever as a nation expect to achieve a rational system of universal healthcare coverage.

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