The Public-Private Double Standard
By John C. Goodman • Monday November 12, 2012 9:40 AM PDT • 3 Comments
As I explain in Priceless: Curing the Healthcare Crisis, there are many reasons why people disagree about healthcare policy. One obstacle to reaching an agreement is that many people don’t realize—or aren’t concerned—that they hold a double standard.
If a private insurance company denies a breast cancer patient a bone marrow transplant, that’s considered a moral outrage—even if the procedure is experimental and is later shown not to work. But if the Arizona Medicaid program denies people organ transplants that do work and do save lives, that is considered an unfortunate budget issue.
If 25,000 British cancer patients die every year because the National Health Service won’t buy the drugs that would have prolonged their lives and they cannot afford to pay for those drugs out of their own pockets, that is considered, again, an unfortunate budget problem. But if even one uninsured American dies prematurely because he or she cannot afford those very same drugs, that is ethically unacceptable.
What I am describing is, of course, a double standard. Many people in health policy, for example, viscerally dislike the idea of private Medicare Advantage plans, an alternative chosen by about one in four Medicare enrollees. Instead they would like to see everyone in conventional Medicare—a public plan. You would be amazed at how many otherwise knowledgeable people are completely unaware of the fact that Medicare is not actually run by the federal government. It’s run by private contractors, including such private insurers as Cigna and BlueCross.
The view that public insurance is good and private insurance is bad really amounts to saying that when BlueCross is called Medicare it is good and altruistic, but when the same company is called private insurer it is bad and selfish. It makes no sense, but there are a lot of people who think exactly that way.
[Cross-posted at Psychology Today]
Tags: Healthcare, Insurance, Medicaid, Medicare 
As President Ronald Reagan said, “Government is the problem, not the solution”. Unfortunately this is true. Many of the problems we face are indeed caused by “government” (federal, state, and local). Government licensing and regulation drives up the cost of health care here in the US to a limit found no where else on Earth. For years Libertarians such as myself have been pointing out this truth, usually to be ignored by most people. The simple fact of the matter is that government creates more problems than it solves. Without prescription laws the cost of health care would be considerably less, especially if we had true free trade in medical drugs. Without the legal monopoly that physicians have over access to medical drugs, the cost of taking care of your own health would be much less than it is today.
Jerome Bigge | Nov 12, 2012 | Reply
The situation here in the UK used to be even worse. If an NHS patient wanted to buy a drug that the NHS wouldn’t provide (an unfortunate budget problem), then the NHS would withdraw from ANY future medical provison and the patient would have to be treated privately. Fortunately when this happened to one of two cancer sufferers recently, there was such an outrage that the NHS had to back down.
John Harrison | Nov 13, 2012 | Reply
Actually it does make sense because most people equate private with “making a profit from other people’s sickness”, while they equate public with “looking out for us.”
Richie | Nov 14, 2012 | Reply