16-07-2013, 02:04 AM
http://www.washingtonmonthly.com/magazin...?page=all#
In a free market society, there's a name for this kind of thingfor when a roomful of professionals from the same trade meet behind closed doors to agree on how much their services should be worth. It's called price-fixing. And in any other industry, it's illegalgrounds for a federal investigation into antitrust abuse, at the least.
But this, dear readers, is not any other industry. This is the health care industry, and here, this kind of "price-fixing" is not only perfectly legal, it's sanctioned by the U.S. government. At the end of each of these meetings, RUC members vote anonymously on a list of "recommended values," which are then sent to the Centers for Medicare and Medicaid Services (CMS), the federal agency that runs those programs. For the last twenty-two years, the CMS has accepted about 90 percent of the RUC's recommended valuesessentially transferring the committee's decisions directly into law.
The RUC, in other words, enjoys basically de facto control over how roughly $85 billion in U.S. taxpayer money is divvied up every year. And that's just the start of it. Because of the way the system is set up, the values the RUC comes up with wind up shaping the very structure of the U.S. health care sector, creating the perverse financial incentives that dictate how our doctors behave, and affecting the annual expenditure of nearly one-fifth of our GDP.
In a free market society, there's a name for this kind of thingfor when a roomful of professionals from the same trade meet behind closed doors to agree on how much their services should be worth. It's called price-fixing. And in any other industry, it's illegalgrounds for a federal investigation into antitrust abuse, at the least.
But this, dear readers, is not any other industry. This is the health care industry, and here, this kind of "price-fixing" is not only perfectly legal, it's sanctioned by the U.S. government. At the end of each of these meetings, RUC members vote anonymously on a list of "recommended values," which are then sent to the Centers for Medicare and Medicaid Services (CMS), the federal agency that runs those programs. For the last twenty-two years, the CMS has accepted about 90 percent of the RUC's recommended valuesessentially transferring the committee's decisions directly into law.
The RUC, in other words, enjoys basically de facto control over how roughly $85 billion in U.S. taxpayer money is divvied up every year. And that's just the start of it. Because of the way the system is set up, the values the RUC comes up with wind up shaping the very structure of the U.S. health care sector, creating the perverse financial incentives that dictate how our doctors behave, and affecting the annual expenditure of nearly one-fifth of our GDP.