Sunday, July 26, 2009

Shipbuilding

http://online.wsj.com/article/SB10001424052970203946904574300482236378974.html
I agree with both the criticisms and the recommendations. Yet they come up short. There are at least two major lapses here: he does not indicate how to reduce frivolous lawsuits without threatening meritorious ones and he does not really address the incentive for doctors to order unnecessary tests and procedures to line their pockets. Also, though the "pay for performance, not activity" recommendation would help to some degree, there seems little else here that would constrain the explosion of the costs of Medicare/Medicaid. Cost/benefit analysis and imposition will be unavoidable. Jindal's program would make a start (and I mean a start at building a better ship with lower running costs, unlike the Obama plan to invite a bunch of new passengers aboard from Mexico and turn over the ship's operation to the ship's treasurer)--but it does not suffice.

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