Friday, May 14, 2010

When you see how IPAB will cut costs, you will want to thank AMA and ACP for their roles in support of PPACA

Yes, the tittle is sarcastic. Go here to read a clear explanation of how exactly the Independent Payment Advisory Board (IPAB) will limit Medicare costs. In a nutshell, Medicare will reimburse physicians and other providers less. The bill is structured so that is about all it can do.

With more stringent price controls that IPAB will generate we will see an even more critical shortage of primary care physicians and a further decrease in quality of primary care. Did anyone at AMA or ACP read that part of the bill?

Another well recognized effect of wage-price controls is the development of a black market which we have not seen so far in health care but see here for how that might play out.

It gets even worse because the IPAB will also through administrative actions of the HHS secretary act to control the rise of private medical costs not just those controlled by CMS.See here.

H/T to John Goodman's blog ( see here ) which is a seemingly inexhaustible source of important information regarding health care economics and the effects we can expect from Obamacare.

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