Early Evening Morning Post (with a few bits and pieces)

Posted on May 1, 2012 by ScottC

Vital Statistics:

Close Change Percent
S&P Futures 1405.82 7.91 .57%
Eurostoxx Index 2306.69 .26 .01%
Oil (WTI) 106.29 1.29 1.23%
LIBOR 0.466 0.000 0.00%
US Dollar Index (DXY) 78.83 .01 0.02%
10 Year Govt Bond Yield 1.9435% .0298%
RPX Composite Real Estate Index ? ?

Sorry for the delay in getting this posted in Brent’s absence. Busy day for me today, although the markets themselves weren’t that busy, what with most of Europe out today on holiday for May Day. Strong ISM and Construction data did move rates a bit higher today and equities rallied, but the afternoon was pretty slow.

Davis Polk’s latest monthly analysis of the progress that the regulatory agencies are making on Dodd-Frank. One notable statistic: regulators have missed two-thirds of the 221 already passed deadlines for rule making. And we still have 158 to go. It’s tempting to say that D/F is the worst legislation passed in the last 100 years, but unfortunately its not even the worst legislation passed during the last 4.

In non-financial news, Jonah Goldberg’s new book, Tyranny of Cliches: How Liberals Cheat in the War of Ideas came out today. I’ve read the intro and am reminded of some of the discussions we’ve had here.

We’ve debated here whether or not Elizabeth Warren is a hypocrite, but apparently there’s a new debate brewing over whether or not she’s a Native American. (This, BTW, is a bit of a bugaboo for me. Isn’t everyone who was born in the US a native American?)

Top ten revelations about bin Laden garnered from the raid on his compound. Most interesting: he was a porn addict. Least surprising: he thought Biden was unprepared to be president. (Who doesn’t?)

Never, ever date your own dentist.

Filed under: Bits and Pieces, Morning Report | 49 Comments »

Health Care Costs Flattening. Why?

Posted on May 1, 2012 by novahockey

The New York Times has an article on the the slowdown and leveling off of health care cost, as a percentage of GDP. The economy is undoubtedly a factor, as people simply delay care. But consumer-directed plans might also be a factor.

Many experts — and the Medicare and Medicaid center itself — point to the explosion of high-deductible plans, in which consumers have lower premiums but pay more out of pocket, as one main factor. The share of employees enrolled in high-deductible plans surged to 13 percent in 2011 from 3 percent in 2006, according to Mercer Consulting.

That means thousands of consumers with an incentive to think twice about heading to the doctor. One study by the RAND Corporation found that health spending among people who shifted into a high-deductible plan dropped 14 percent — though the study also found that enrollees cut back on some care that tended to save money in the long run, like vaccinations.

The article notes that there also haven’t been any big “blockbuster” drugs released in the past few years.

I think that makes the case for high-deductible and/or consumer-directed care. Patients that are insulated from the true cost of care will consume more. Shift costs their way and they consumer less.

Across the silos of care the only constant is the patient. Policymakers are being on “patient-centeredness,” but that typically means some way of monitoring and tracking patients. I think these can be a useful tool to complement, but not replace, what ultimately has to be the patient’s responsibility.

Unfortunately, the ACA makes the high-deductible plans more expensive and subjects them to the same requirements to offer “free” preventive care and the like, thus defeating the purpose.

Filed under: aca, health insurance | 7 Comments »