CONTACT INFO:

MAILING ADDRESS: 775 Main Street #221 Westbrook, ME 04098

Phone: (207) 619-5563

Web: Contact Form

Looking for LIBERTY-ORIENTED SOLUTIONS & LIBERTY-STYLED information? SUBSCRIBE & LIKE us TODAY! |matthew@sovmoney.com
with Matthew Scott
Check out our blog--Your home for LIBERTY news, opinion, and SOLUTIONS!

This MIT Professor Thinks Wall Street Can Fix High Health Care Costs

Home/Healthcare News/This MIT Professor Thinks Wall Street Can Fix High Health Care Costs

This MIT Professor Thinks Wall Street Can Fix High Health Care Costs

by Sarah Zhang | Wired | February 24, 2016

This MIT Professor Thinks Wall Street Can Fix High Health Care Costs

Sovereign Solutions Editor’s Note:

This is an interesting featured article. However…

Does ANYBODY remember 2007-2008???

Doesn’t financial engineering, and all of it’s false promises and creative instruments of mortgage and other complex debt based fraud ring a bell?

Do you remember how such proved to be so infectious to other areas of the economy and, due to their very nature, how they caused for there to be dramatic undervaluation [understatement] of risk?

Do we need even MORE leveraged speculation in markets now, and especially so particularly in a critical segment such as healthcare?!

The fundamental, underlying reason for high medical prices is STILL not being addressed! And making matters worse, more techno-narcissism magic is apparently in the offing by the same sort of disastrous troll industries that feed off of various Rube Goldbergs, or purposefully complicated processes to critical product and service creation and delivery that is in actuality, without the added and bizarre [to me and you but not to those that profit from such] complications, really rather simple!

This is just plain MAD! There needs to be actual comprehension of the actual problem with healthcare! And very few are pointing out just what the actual problem is…we are, if you are interested.

Spreading more risk, or supposedly doing so, is definitely NOT going to make healthcare deliver with greater quality or efficiency and better access; at least it cannot do so in any sort of viable way! Have we not learned from the very recent past?

Crony Wall Street and its wedded partner, Big Government, is NOT where positive, sustaining solutions are to be found!

All healthcare prices, including those pertaining to “curing” technologies and the like, best may be addressed via healthcare markets that actually demonstrate price discovery for underlying medical services. Anything less, at this point, is magical thinking and/or outright deception or fraud.

FEATURED CONTENT

IT WAS DURING the financial crisis that Andrew Lo had his epiphany: The way to save health care from ever-rising costs is by bringing in the banks. Specifically, by packaging drug development costs into securities to be bought and sold by Wall Street—the very, um, mortgage-bundling technique that blew up the economy in 2007. “The reason the financial crisis happened is not because securitization didn’t work. It happened because it worked way too well,” says Lo, a professor of financial engineering at MIT. Securitization injected a huge pool of money into mortgages—what if you could inject that pool of money into a worthwhile cause and, ahem, do it responsibly?

So Lo, who has seen his mother and several friends die from cancer, wants to use the techniques of Wall Street to fix healthcare. In a new paper in Science Translational Medicine, he and his coauthors propose creating loans for patients whose insurance policies don’t cover ultra-expensive treatments like the cure for hepatitis C—loans that would be financed by bundling them and selling to Wall Street investors.

I know. I know. But hear him out. Even Lo admits that this proposed solution, only a short-term one, sounds distasteful. But behind the proposal is a bigger, more provocative point. As much as “financial innovation” has become a dirty phrase since Wall Street brought down the economy, its fingerprints are everywhere. Health insurance, after all, is a type of financial innovation that spreads the cost of health care over a large pool of people. Maybe the way to fix health care costs is smarter financial engineering.

Consider the dilemma. Sovaldi, the hepatitis C cure, costs $84,000 for a course of treatment, and who gets covered varies insurer by insurer or state by state when it comes to Medicaid. What this means practically is that many hepatitis C patients can’t get Sovaldi. As more expensive cures come on the market—like gene therapy, which may cost $1 million or more—the problem of paying for these very expensive treatments is only going to get worse. Either premiums shoot up for everyone or … ?

“Andrew Lo’s paper is really the first systematic attempt of showing the way forward,” says Amitabh Chandra, a health policy researcher at Harvard. “My eyes lit up when I saw it.” Chandra doesn’t agree with Lo’s first proposal, that patients should shoulder the debt for their treatment. But he like the looks of a longer-term solution that Lo and his coauthors outline: Insurance companies or the government should take on the loans for these cures. That will take longer to implement, because it requires new laws, either to allow states with balanced budget requirements to take on debt or for insurance companies to shift the debt associated with a patient’s treatment onto the next insurance company should they switch.

This all sounds ridiculously baroque, doesn’t it? Why not just force drug companies to lower their prices? If you can hold your nose for a second, think about it from a drug company’s point of view. Making a drug that alleviates the symptoms of diabetes gets you decades of revenue from a single patient; making a drug that cures diabetes gives you only one payout. Unless that payout is huge, the profit-driven drug company has no financial incentive to cure diabetes, which is the better ultimate outcome.

Read More

CRITICAL SOURCES:

  1. http://dailyreckoning.com/the-war-on-savers-and-the-200-rulers-of-world-finance/

WHAT DO YOU THINK?

Do you have any objections, thoughts, concerns, or contributions? I REALLY WANT TO KNOW. Help me to make this a conversation!

Together we can map out better solutions and truly navigate clearer paths towards quality services, low prices, and better lives.

Oh! And as always, if you find this post useful, do me and so many others a huge favor. When it comes to this kind of information: share and share alike! Information is meant to be disseminated wide and far.

Sovereign Liberty Solutions

Your Home for Liberty Bias in News, Opinion, & Solutions
By | 2017-03-27T22:04:57-04:00 February 26th, 2016|Categories: Healthcare News|Tags: , , |0 Comments

About the Author:

My name is Matthew. I am founder of and manage Sovereign Liberty Solutions. I am a proponent of free, voluntary association and expression. I understand that there is no single exception or excuse to violate this with the initiation of force, fraud, and coercion. I welcome a genuine dialogue & seek information, news, analysis, and, of course, solutions, whether it be on the individual level or a more voluntary association [group] or even "national" one.

Leave A Comment

CommentLuv badge