The Recess Appointment of Donald Berwick
Late last week, President Obama made a recess appointment of Dr. Donald Berwick to head the Center for Medicare and Medicaid Services (formerly the Health Care Financing Administration). This has provided a good chunk of the week and weekend’s polititainment.
I know little about Berwick or his merits as an administrator of the government health care system, but in an April Cato@Liberty post I reviewed an article of his on “patient-centered health care.” If you’re interested, take a look at my comment, “A Little Less Poetry, a Little More Economics.”
Health Care Rights and Wrongs
Michael Cannon’s post about this ridiculous New York Times article nearly made me fall off my chair. The article, entitled “A Poor Nation, With a Health Plan,” favorably compares the health care system in Rwanda with that in the United States. That’s right: because we don’t have state-provided universal health care coverage, Americans are worse off than residents of one of the poorest countries in the world. (This is a new article, by the way, not Frank Rich’s column in the Sunday paper.)
Here’s how it begins:
The maternity ward in the Mayange district health center is nothing fancy.
It has no running water, and the delivery room is little more than a pair of padded benches with stirrups. But the blue paint on the walls is fairly fresh, and the labor room beds have mosquito nets.Inside, three generations of the Yankulije family are relaxing on one bed: Rachel, 53, her daughter Chantal Mujawimana, 22, and Chantal’s baby boy, too recently arrived in this world to have a name yet.
The little prince is the first in his line to be delivered in a clinic rather than on the floor of a mud hut. But he is not the first with health insurance. Both his mother and grandmother have it, which is why he was born here.
In other words, it’s not that the cost of modern medicine has declined in relative terms (thanks to American technological development) and the economy has grown (ours and theirs) such that more people can be medically trained and the tax base can support more public hospitals, but the insurance genie has come and sprinkled fairy dust on misbegotten villagers. (Read the whole thing for some more eye-popping lines — Rwanda has less obesity than the United States, for example.)
Now, I’m just a lawyer – about the only thing I know about health policy is that Obamacare is unconstitutional – but it seems to me that there are at least two basic definitional problems with the inferences the article invites the reader to make even beyond the detailed technical analysis Michael provides.
First, there’s a difference between health care and health insurance. Nobody in the United States is denied health care. Between Medicaid and federal law requiring emergency rooms to treat all comers, we simply do not have children dying in the street (like in, say, Rwanda, where, according to the Times, the most common causes of death are “diarrhea, pneumonia, malaria, malnutrition, infected cuts”). As Michael says, “Yes, the poorer nation has a higher levels of health insurance coverage. But the wealthier nation does a better job of providing medical care to everyone, insured and uninsured alike.” That is, you can (and often do) have universal health insurance that provides universally bad care – except for the political elites, who pay extra for proper Western care. Is there any American who would have better health living in Rwanda or any number of countries where the government provides universal health insurance?
Second, and relatedly, health care is not and cannot be a “right” — because rights are things that inhere in human beings by virtue of their being human. As the Declaration of Independence says, we are “endowed by [our] Creator with certain unalienable Rights.” These “natural” rights are things we enjoy without burdening the rights of others: freedom of speech and belief, the right to earn an honest living, freedom of movement, the right to acquire and possess private property, the right to decide what we do every day . . . all the way down to the right to get out of bed on the left or right side (or to stay in bed all day) – and the right to defend ourselves against those who would take away these rights. Once you start making “rights” out of things that somebody has to provide you — food, shelter, health care, employment — then you’ve violated everyone’s natural rights and reduced their inherent liberty.
And that’s no less true in countries where the constitutions guarantee all sorts of things (e.g., article 24 of the UN Declaration of Human Rights guarantees the right to a paid vacation. Those countries have the added misfortune of having a devalued constitution, whose promises are wholly aspirational at best. Indeed, I’m often amused in foreign travels to be asked why the U.S. Bill of Rights doesn’t include health care (among other things). I mean, if the best constitutions were the grandest ones, I could draw one up that guaranteed the right to immortality, the mandate that all streets be paved in gold, and the provision that everyone have above-average intelligence. Also, two chickens in every pot and a flying car in every garage.
There is no magic genie to public health or national development: it takes the rule of law — including restraining political elites from meddling in the economy – and years of entrepreneurship and hard work. Indeed, there are plenty of ways in which the United States can improve its health care system but universal health insurance is beside the point. A cautionary note, though: It wasn’t that long ago, in relative human terms, that America was at Rwanda’s level of development — and it won’t take long to destroy, in the name of “fairness” or “human rights,” all we’ve created.
The Case for Auditing the Fed
Recently, the Federal Reserve has significantly altered the procedures and goals that it had followed for decades. Rep. Ron Paul (R-TX) has introduced a bill calling for an audit of the Fed.
Remarkably, there is significant opposition to such oversight, and the political prospects for undertaking such an audit are relatively bleak. In a new paper, Cato scholar Arnold Kling examines the processes and outcomes on which an audit should focus, and looks at opposition to the audit:
We should document why the Fed took each step, what the expected results were, and whether those results were achieved. …The profit or loss of the Fed’s investments would provide a very helpful indicator of whether the Fed’s actions served the economy as a whole or merely transferred wealth from ordinary taxpayers to bank shareholders.
ObamaCare’s New Entitlement Spending “Sows the Seeds” of a Budget Crisis
From Robert J. Samuelson’s column in today’s Washington Post:
When historians recount the momentous events of recent weeks, they will note a curious coincidence. On March 15, Moody’s Investors Service — the bond rating agency — published a paper warning that the exploding U.S. government debt could cause a downgrade of Treasury bonds. Just six days later, the House of Representatives passed President Obama’s health-care legislation costing $900 billion or so over a decade and worsening an already-bleak budget outlook.
Should the United States someday suffer a budget crisis, it will be hard not to conclude that Obama and his allies sowed the seeds, because they ignored conspicuous warnings. A further irony will not escape historians. For two years, Obama and members of Congress have angrily blamed the shortsightedness and selfishness of bankers and rating agencies for causing the recent financial crisis. The president and his supporters, historians will note, were equally shortsighted and self-centered — though their quest was for political glory, not financial gain.
I hope Samuelson is wrong, but it’s probably a good idea to behave as if he’s right, and repeal ObamaCare’s new entitlement spending.
Medicare Fraud: 1, Anti-Fraud Measures: 0
As the nation contemplates the new health care entitlements that Congress and President Obama just created, it is worth noting an article in today’s Washington Post, which reports on the performance of past efforts to eliminate fraud in another health care entitlement:
More than a decade ago, Congress set out to squeeze the fraud out of Medicare billing at nursing homes, requiring more precise justifications for costs. It created new “ultra-high” billing categories intended to be used for only 5 percent of the patients needing highly specialized care and rehabilitation.
But within a few years, nursing homes flooded the ultra-high categories with patients, contributing to $542 million a year in potential overpayments, federal analysts found.
Since then, the numbers in the ultra-high categories have quadrupled, and the amount of waste and abuse could reach billions of dollars a year…
The article ends with the ominous implication that eliminating fraud in entitlement programs like Medicare will ultimately require government agencies to decide whether certain services are medically necessary.
Death panels, anyone?
Your Medical Records Aren’t Secure
I have one observation about, and one minor difference with, the very good—and very concerning—Wall Street Journal opinion piece by Deborah Peel of Patient Privacy Rights. The piece announces PPR’s “Do Not Disclose” campaign around health information, which will soon be pouring into promiscuous, government-designed “electronic medical records.”
In a January 2009 speech, President Barack Obama said that his administration wants every American to have an electronic health record by 2014, and last year’s stimulus bill allocated over $36 billion to build electronic record systems. Meanwhile, the Senate health-care bill just approved by the House of Representatives on Sunday [now signed into law] requires certain kinds of research and reporting to be done using electronic health records. Electronic records, Mr. Obama said in his 2009 speech, “will cut waste, eliminate red tape and reduce the need to repeat expensive medical tests [and] save lives by reducing the deadly but preventable medical errors that pervade our health-care system.” But electronic medical records won’t accomplish any of these goals if patients fear sharing information with doctors because they know it isn’t private…
Describing how the Health Insurance Portability and Accoutability Act (HIPAA) undermined health privacy, Peel says, ”In 2002, under President George W. Bush, the right of a patient to control his most sensitive personal data—from prescriptions to DNA—was eliminated by federal regulators…” Other than the quibble about whether federal law ever gave patients anything that could be genuinely called a right, this is correct and concerning.
What’s interesting is that the policy is routinely ascribed to President Bush (not only by Peel). My suspicion is that blaming President Bush props up the dream that privacy can be maintained in a system that centralizes control of health care—if only the right party is in power.
In fact, the passage of HIPAA in 1996 (under President Bill Clinton) set the course for this outcome. The fact that HIPAA privacy was undone during the Bush administration is a coincidence convenient for his ideological and political opponents. If I’m mistaken, the proof will be the reversal of the policy during the current administration. I’m not aware of any plan for that to happen.
“Electronic record systems that don’t put patients in control of data or have inadequate security create huge opportunities for the theft, misuse and sale of personal health information,” says Peel. I agree, but more importantly, I think, public policies that don’t put patients in control create the same—or at least parallel—problems.
Transferring control of health care to the federal government transfers control of health information to the federal government. The government has interests distinct from patients, and no matter how hard one fights to protect patients’ privacy interests, the government’s interests in cost control, social engineering, and such will ineluctably win out.
Public policies that restore power to patients will restore health privacy to patients. A decade or two of exploring alternatives to patient empowerment may drive the lesson home.

