Money shouldn't be a barrier to healthcare
Money shouldn't be a barrier to healthcare (Photo: Flickr user Pictures of Money)

Last week, Indi­ana Uni­ver­si­ty School of Med­i­cine pro­fes­sor Adam Car­roll filed a piece for the New York Times with a provoca­tive premise. Titled Pre­ven­tive care saves mon­ey? Sor­ry, it’s too good to be true, it argued that invest­ing in pre­ven­ta­tive care does­n’t actu­al­ly yield sav­ings. Here’s its open­ing and closing:

The idea that spend­ing more on pre­ven­tive care will reduce over­all health care spend­ing is wide­ly believed and often pro­mot­ed as a rea­son to sup­port reform. It’s thought that too many peo­ple with chron­ic ill­ness­es wait until they are tru­ly ill before seek­ing care, often in emer­gency rooms, where it costs more. It should fol­low then that treat­ing dis­eases ear­li­er, or screen­ing for them before they become more seri­ous, would wind up sav­ing mon­ey in the long run.

Unfor­tu­nate­ly, almost none of this is true.

[…]

In the short term, less smok­ing would lead to decreased spend­ing because of reduc­tions in health care spend­ing for those who had smoked. In the long run, all of those peo­ple liv­ing longer would lead to increas­es in spend­ing in many pro­grams, includ­ing health care. The more peo­ple who quit smok­ing, the high­er the deficit from health care — bare­ly off­set by the rev­enue from tax­ing cigarettes.

But mon­ey doesn’t have to be saved to make some­thing worth­while. Pre­ven­tion improves out­comes. It makes peo­ple health­i­er. It improves qual­i­ty of life. It often does so for a very rea­son­able price.

There are many good argu­ments for increas­ing our focus on pre­ven­tion. Almost all have to do with improv­ing qual­i­ty, though, not reduc­ing spend­ing. We would do well to admit that and move forward.

Some­times good things cost money.

We can agree that good things usu­al­ly do cost mon­ey, but this seems like espe­cial­ly curi­ous log­ic to get to that con­clu­sion. Yes, if few­er peo­ple smoke, more peo­ple will live longer to get sick of oth­er things and die instead from that, requir­ing treat­ment along the way that might be expen­sive. But this is sort of like argu­ing that fire alarms don’t save mon­ey in the hous­ing mar­ket because the homes that don’t burn down with­in one hun­dred years become more expen­sive to maintain.

True, it saved an awful lot of mon­ey when that New York State lot­tery win­ner put off going to the doc­tor till he found out he had stage four can­cer.

Since he could­n’t afford to catch it ear­li­er, he just straight up died, skip­ping right past all that expen­sive chemother­a­py, hos­pi­tal, and hos­pice care, for months or years of remis­sion and return.

By Car­rol­l’s rea­son­ing, we real­ly should count improved access to repro­duc­tive auton­o­my as mon­u­men­tal health­care sav­ings because it means you’re not only sav­ing the cost of an unplanned preg­nan­cy or abor­tion, you’re also sav­ing the econ­o­my from a life­time of future health­care costs.

Euthana­sia on demand, espe­cial­ly for peo­ple over 80, would involve lots of cost-sav­ing, and what care could pos­si­bly be more pre­ven­ta­tive than mak­ing sure no one ever needs to use health ser­vices again?

So that’s just not a use­ful or real­ly even an hon­est way to look at things, even if that’s what the stud­ies he ref­er­ences were say­ing, and I’m not con­vinced they were, espe­cial­ly when it comes to emer­gency room vis­its increasing.

Mass­a­chu­setts: The imple­men­ta­tion of health care reform in Mass­a­chu­setts was asso­ci­at­ed with a small but con­sis­tent increase in the use of the ED across the state. Whether this was due to the elim­i­na­tion of finan­cial bar­ri­ers to seek­ing care in the ED, a per­sis­tent short­age in access to pri­ma­ry care for those with insur­ance, or some oth­er cause is not entire­ly clear and will need to be addressed in future research.

Ore­gon: We did not find that Med­ic­aid caused a sta­tis­ti­cal­ly sig­nif­i­cant decrease in emer­gency-depart­ment use for any of the con­di­tions we con­sid­ered; indeed, once again the vast major­i­ty of point esti­mates are pos­i­tive. We found sta­tis­ti­cal­ly sig­nif­i­cant increas­es in emer­gency-depart­ment use for sev­er­al spe­cif­ic con­di­tions, includ­ing injuries, headaches, and chron­ic conditions.

ACA over­all: We found that total ED use per 1,000 pop­u­la­tion increased by 2.5 vis­its more in Med­ic­aid expan­sion states than in non­ex­pan­sion states after 2014. … Among the vis­it types that could be mea­sured, increas­es in ED vis­its were largest for injury-relat­ed vis­its and for states with the largest changes in Med­ic­aid enrollment.

Although Oregon’s increase in ED vis­its appears to be per­ma­nent pre­vi­ous research sug­gests that the increase in ED vis­its may be tem­po­rary because of pent-up demand. Future research should revis­it how ED vis­its con­tin­ued to change beyond the first year of imple­men­ta­tion in 2014.

‘When peo­ple can afford to go to the Emer­gency Room with­out bank­rupt­ing them­selves, they’re more like­ly to.’ Well, yes, and an increase in peo­ple using the Emer­gency Room still seems entire­ly con­sis­tent with low­er­ing health­care spend­ing over­all because, for a lot of peo­ple, their pre­ven­tive care is going in to get some­thing checked out when it’s real­ly hurt­ing instead of about to kill them.

Indeed, expand­ing Med­ic­aid meant more peo­ple with injuries requir­ing emer­gency care actu­al­ly both­ered to go get it.

Car­roll dis­miss­es a study that found that all sorts of pre­ven­ta­tive care would lead to sav­ings in health­care of ‘only’ $3.7 bil­lion per year in 2006.

But it saves mon­ey to accom­plish this each year:

What’s more, the increased costs of [invest­ing in an evi­dence-based pack­age of pre­ven­tive ser­vices] would be recouped. Put dif­fer­ent­ly, more than two mil­lion peo­ple would have been alive dur­ing 2006—or 780 peo­ple in a city of 100,000—if pre­ven­tive care had been wide­ly deliv­ered in pri­or years, all with­out an increase in net cost.

‘Peo­ple healthy enough not to die’ tends to involve cost-sav­ings in the sense that a lot of mon­ey has been invest­ed in a giv­en per­son already in edu­ca­tion and job skills. ‘Peo­ple healthy enough not to be ill for extend­ed peri­ods of time or per­ma­nent­ly dis­abled’ saves mon­ey, too. It might save mon­ey not to ever change your oil, but a car that no longer runs is con­sid­er­ably less use­ful as a car.

Soma­lia does­n’t spend very much on pre­ven­ta­tive health­care, and the costs show up in peo­ple who are unnec­es­sar­i­ly infirmed and need some­one else to take care of them instead of engag­ing in pro­duc­tive eco­nom­ic activity.

Most sus­pi­cious is the fact that Car­roll went about mak­ing his case by focus­ing on an uptick in emer­gency room vis­its and peo­ple sur­viv­ing lung can­cer to die of heart dis­ease rather than a more straight­for­ward look at how oth­er OECD nations’ increased avail­abil­i­ty of pre­ven­ta­tive care seems to result in peo­ple liv­ing longer, health­i­er lives while their gov­ern­ments spend less on health­care overall.

To be fair, Car­roll is mak­ing only a soft sort of argu­ment, but I don’t think his links sup­port his claim, that his claim even makes sense on its own terms, or that even if those were valid, that’s the most sen­si­ble conclusion.

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