Comments on: Elizabeth Edwards Criticizes So-Called Consumer-Driven Health Care http://wonkroom.thinkprogress.org/2008/09/18/edwards-consumer-testimony/ Thu, 26 Nov 2009 16:42:01 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: stateofthedivision http://wonkroom.thinkprogress.org/2008/09/18/edwards-consumer-testimony/comment-page-1/#comment-2376 stateofthedivision Thu, 18 Sep 2008 22:14:28 +0000 http://thinkprogress.org/wonkroom/2008/09/18/edwards-consumer-testimony/#comment-2376 There are many false assumptions built into CDHP's. The first is that the supply-demand relationship is elastic, that is price impacts consumption. Ex-Triad Hospital CEO Denny Shelton told Wall Street in his investor presentations that prices don't impact health care utilization. The second is people have the disposable income to fund their health savings accounts. Nevermind the investment risk associated with such accounts. Third, the consumer is health literate enough to compare options and shop effectively. And fourth, that busy doctors will take the time to structure pricing and negotiate with patients. CDHP's comprise only 2% of the health insurance marketplace. It took a much larger penetration of managed care before provider behavior changed. This is all a smokescreen for doing nothing under Bush's term. That McCain perpetuates the myth shows Republicans have no solutions for America's healthcare crisis. There are many false assumptions built into CDHP’s. The first is that the supply-demand relationship is elastic, that is price impacts consumption. Ex-Triad Hospital CEO Denny Shelton told Wall Street in his investor presentations that prices don’t impact health care utilization.

The second is people have the disposable income to fund their health savings accounts. Nevermind the investment risk associated with such accounts.

Third, the consumer is health literate enough to compare options and shop effectively.

And fourth, that busy doctors will take the time to structure pricing and negotiate with patients. CDHP’s comprise only 2% of the health insurance marketplace. It took a much larger penetration of managed care before provider behavior changed.

This is all a smokescreen for doing nothing under Bush’s term. That McCain perpetuates the myth shows Republicans have no solutions for America’s healthcare crisis.

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