The Ryan Plan

Posted by

Richard Young

First published 5/22/11 on American Health Scare

It’s been interesting watching the political maneuvering since Newt Gingrich criticized the plan to reduce the federal budget deficit proposed by the House Budget Committee Chair Paul Ryan of Wisconsin. After receiving push back from fellow Republicans, Gingrich spent the week backpedaling from his earlier remarks.

Many pundits have recognized Ryan for his courage to present his ideas in the first place. I also applaud the fact that he was willing to put the issue of fiscal sanity on the radar screen in a concrete way few other politicians have been willing to. This comes against the backdrop of recent estimates that a 56-year old couple will pay $140,000 in Medicare taxes per person over their work lives, but will receive $430,000 of benefits. This is unsustainable welfare.

I have not read the entire plan myself, but I’ve read enough about it I feel like I understand the basic idea. Ryan proposes to not change Medicare at all for people currently age 55+. People < 55 would be put into a voucher system where they would choose plans by applying the voucher amount to the premium, then pay the difference. As Ryan said today on Meet the Press, this would allow seniors to steer away from plans that are inefficient.

There are three big problems with this plan.

First, we have a huge budget deficit NOW, so to kick the problem down the road and not make difficult decisions now means we as a nation still aren’t willing to face facts, hoping that somehow our national character will change at some fuzzy time in the future when we will actually face facts. Highly unlikely.

Second, it puts too much faith in the ability of individual consumers to understand the complexities of the healthcare system. I know how intimidated I am to receive a dentist bill or vet bill. How in the world does anyone expect a person not in healthcare to shop around for medical facilities, physicians, drugs, and the rest? As one doctor writing in Texas Medicine this month put it, “How are they (patients) supposed to value shop for insurance coverage when I have to hire a broker and a couple of financial people to figure out how to get insurance for my own employees?”

Third, the plan calls for choice — which I’m all for — but doesn’t provide any mechanism to allow for meaningful differences in healthcare delivery models that actually break the cost curve. Currently, health plans and facilities try to attract customers with the promises of expensive technology. Until some deeper understandings of the role of the healthcare system in our lives start to happen, consumers will continue to be sold on ideas that only raise the cost of healthcare.

Unfortunately, the culture of America must change for us to have significantly more affordable healthcare. The second most budget-busting phrase in America — after entitlements — is medically necessary. We must develop a new set of values and beliefs of what is truly important in healthcare. We can start by challenging the POEM assumptions:

  • Prevention saves money
  • Ologist care is best
  • Early detection prevents all bad outcomes
  • More treatments equal better care

These should be replaced with new and improved views of what is really important in creating an efficient, but caring healthcare system.

  • An ounce of prevention costs a ton of money
  • Family medicine-founded care is best
  • Early detection doesn’t always change bad outcomes
  • Aggressive care isn’t always the best care

I give Rep. Ryan full credit for his efforts to save our children’s future by putting his political career in jeopardy with his proposals. Unfortunately, a real solution will be even more difficult.

For America to ever have reasonably affordable healthcare, the relationship between doctors and patients must change. The current relationship between doctors and the American public – that all possible healthcare services be provided no matter how rare the benefit or expensive the service – is unsustainable. Until we accept this reality, healthcare costs will continue to rise faster than personal incomes and soon health insurance will be available only to the very wealthy. The great American healthcare irony — we spend the most but get the least — will only get worse.

This reality is what we need to deal with.

Richard Young MD is a family physician, educator and Director of Research at the John Peter Smith Hospital Family Medicine Residency in Fort Worth, Texas. He blogs at American Health Scare.

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