Monday, April 30, 2012

Why preventive care should not be covered

There was an interesting article in Friday's Plain Dealer regarding lung cancer screening. The real gem though was an indisputable example of consumerism working in healthcare and why PPACA's preventive coverage requirements are such a terrible idea.

"Last June, University Hospitals Seidman Cancer Center began offering $99 lung cancer screenings for people who have a referral from their primary physicians. On Monday the Cleveland Clinic Respiratory Institute will begin offering screenings for $125."

"UH and the Clinic offer low-dose CT at prices significantly lower than the $300 or more that a person would normally pay, since insurance does not cover the scans" [emphasis added]

If these tests were required coverage under PPACA they would instantly be three times more expensive. To dispel the myth that individuals can't shop for price, supply and demand doesn't apply to healthcare, or consumerism can't work just because University Hospitals and Cleveland Clinic obviously think there is a sufficient market to offer these services and Cleveland Clinic must think these consumers are price sensitive enough to lower their prices close to University Hospital's instead of charging their full normal price.

Why not unleash this power to cut cost 66% instantly on the 40%+ of healthcare that is not urgent or lacking competition?

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