RonnieAMA

Ronnie Speaks for AMA


Update III
: AMA flip flops?

Update II: Charles McCoy, MD: "Dear AMA. I quit!"Me too!

Update I: Leading comment on the Times story

I am a physician, and this ’supporting doctors’ instead of supporting health (plus being a screen for the tobacco industry years ago) is exactly why I do not belong to the AMA. They should be ashamed of themselves. —

It was only a matter of time before the American Medical Assocation put its well heeled foot down and put a stop to this nonsense talk about creating a public insurance option to compete against its partner in profits, America’s lucrative private insurance system. The TimesRobert Pear reports:

As the health care debate heats up, the American Medical Association is letting Congress know that it will oppose creation of a government-sponsored insurance plan, which President Obama and many other Democrats see as an essential element of legislation to remake the health care system.

No one really expected one of America’s Most Anti-competition organizations (AMA) to support genuine reforms, let alone one that would force competition on an increasingly concentrated industry. But it’s curious to see the arguments AMA cites.

First, the AMA ignores the tens of thousands of America’s doctors who serve patients under government-backed Medicare (which AMA also opposed), Medicaid, the Veterans’ Adminstration, SCHIP, etc:

While committed to the goal of affordable health insurance for all, the association had said in a general statement of principles that health services should be “provided through private markets, as they are currently.”

So it naturally follows that the sacred duty of physicians is . . . to protect private markets. But whose market and which market choices?

“The A.M.A. does not believe that creating a public health insurance option for non-disabled individuals under age 65 is the best way to expand health insurance coverage and lower costs. The introduction of a new public plan threatens to restrict patient choice by driving out private insurers, which currently provide coverage for nearly 70 percent of Americans.”

Never mind that this scenario would occur only if the public plan became so attractive to consumers that they left the private insurers in droves. But note it’s not the ability of consumers to choose their doctors or health care providers that’s at risk. After all, even if every doctor and nurse were forced to work for Obama the Socialist — and no one is proposing anything remotely close to that — you’d still be able to choose your doctors and providers. Has anyone traveled outside the US?

No, what must be protected is the ability to choose only priate insurance companies and HMOs in their concentrated, non-competitive markets. That must be a footnote somewhere to the Hippocratic Oath.

Shielding competitors is not promoting competition

Nor is it competition that AMA is protecting. What they’re really doing by trying to kill the public plan is to protect competitors, not competition. And AMA is simply lying when it claims doctors would be forced to serve "public plan" patients; no, the rule is, if you accept Medicare patients and payments, you can’t discriminate against public plan patients; no one would force doctors to take more patients than they could handle. These are all just classic misdirections.

Pear’s article then correctly points to the real reasons AMA wants to tank the whole reform effort. You see, the AMA guys read the same Atul Gawande article (The Cost Conundrum) in the New Yorker that Obama read. When Obama told Democrats, "This is what we have to fix," the AMA thought, "Uh, oh!"

That must-read article (very roughly translated) examines doctors’ practices and delivery systems around the country and finds that the reason why some regions/plans have extremely high health care costs, while others have much lower costs but equal or better care is because of the different way doctors and health professionals are compensated and how they define their practice. Among other reforms, we have to reexamine the structure of incentives so that we serve wellness, and not just services for sickness.

The fee-for-service paradigm, coupled with normal profit motives, create powerful incentives for unnecessary/excessive referrals, tests, treatments and outright self-dealing when doctors refer patients to their own affiliated labs, hospitals and pharmacies. And that paradigm is taking over and systematically driving costs/prices higher, while the absence of effective oversight or competition means there’s nothing to keep it from spreading. Interesting how a greed-infected compensation incentive structure creates systemic risk, isn’t it?

And how would we change this deeply ingrained, self-aggrandizing system? It will take a jolt from Congress, followed by a strong oversight entity with the ability to "encourage" change in compensation/incentives structures. That’s partly what, in Obama’s framework, a revitalized MedPAC (Medicare’s current advisory group) would do to support and oversee a system of choice between a robust public plan and private plans.

A big piece of the reform ball game, the key to getting real consumer choice, meaningful cost reductions, better care and universal coverage is right there, and AMA knows it. And they’re just not going to allow it.

This is where folks better fight back or forget about health reform. The AMA and friends have their checkbooks deep in Congress’ pockets. It’s about the money, folks, and it always has been, and we’re going to have to push Congress extremely hard to overcome that.

h/t to HuffPo for the Ronnie pic.

More on AMA’a Notorius Opposition to Health Care Reform and other stuff:

Sam Stein/HuffPo, History of AMA opposition to reform
Blue Girl, The AMA’s old guys don’t represent us; they opposed Medicare too!
Small Business Majority, Health reform will save us money (h/t Think Fast)
Ezra Klein on Pearlstein, It’s the doctors, stupid
Ezra Klein, Sen. Rockefeller’s Public Plan Proposal
PNHP, summary of House hearing on single payer
And see selise’ Oxdown diaries on that hearing on this page.
Ceci Connolly/WaPo, Obama finds health care model in Green Bay