Fail to understand logic, fail to understand healthcare reform

Wednesday, April 4, 2012 |

I had wanted to comment on the latest series of article on SDP's website defending its "National Healthcare Plan" when the first one was posted last week, but decided to wait and read the whole series before commenting.

The writer is a health economist, but nevertheless there are some points in his arguments which I dispute. The three articles are too long to reproduce in full here, so I summarise and discuss each of the articles in the series below. Do read the original articles linked to yourself.

In part 1, the author begins by introducing the concepts of "disease burden", "mortality", and "morbidity", and argues that little is being done now to collect data for these indicators. Despite this lack of data (which is in fact available), the author believes that "between a universal healthcare system and one that is not, the former has a greater chance of saving lives, provided it gives priority to evidence-based policies".

Now intuitively one would agree with that statement - after all, if people do not or cannot access healthcare due to costs, then they will not benefit from the nation's healthcare system. However, this assumes that cost is a barrier to people accessing healthcare. Yet in SDP's "National Healtcare Plan", the possibility of a "buffet syndrome" is dismissed with the statement that "[t]he behaviour is less likely seen in chronic non-symptomatic illnesses like hypertension or diabetes, where it is more likely to encounter non-compliance with treatment or medication, even in patients who are having their treatment paid by third parties" (emphasis mine) - so if SDP believes that the problem with chronic disease management is non-compliance rather than cost, then how will a "universal healthcare system" be better at "saving lives"?

The writer then goes on to praise SDP's plan in generic terms, without giving specific reasons as to why he thinks that "[t]here are many proposals in the SDP’s plan to suggest that morbidity in the patient-population will be better managed", or that "SDP’s healthcare plan shows promise of better management and reduction of burdens that diseases impose on Singapore society".

In part 2 of the author introduces the concepts of "total healthcare expenditure" (THE), "cost of ill health in the economy" (CIHE), and "cost of ill health in a society" (CIHS).

Again, these are intuitive concepts which the laymen can easily understand and appreciate. The writer notes that the amount spent on THE may not be indicative of what the government spends on reducing CIHE and CIHS in total, because the resources expended on tackling many of the problems that result in a higher CIHE and CIHS are not in fact classified as our THE. At the same time, non-government expenditure by the people such as "hiring maids to provide home care" and "special needs teachers or extra tuition teachers for... children with learning disabilities" are costs that are not factored in when calculating the THE.

In short, the writer argues, the THE is not a good indicator of how much the government spends reducing CIHE and CIHS, and it does not measure how much the people spend on what is traditionally not included when calculating the THE.

So far so good. But of we look at what the writer thinks are the major health problems which are not being considered as part of our THE, being "alcohol misuse, drug addiction, gambling, smoking," and "families hiring maids to provide home care for their loved ones [with chronic diseases]" and "parents [hiring] special needs teachers or extra tuition teachers for their children with learning disabilities", then we need to ask ourselves how SDP's plan will be more effective than the current healthcare model in reducing the CIHE and CIHS arising from these "problems".

Now if "alcohol misuse, drug addiction, gambling, smoking," increase our CIHE and CIHS, then how will a buffet-style healthcare funding model reduce the problem? In other words: how will telling people with problems of alcohol misuse, drug addiction, gambling, and/or smoking that the government (and by extension the people) will pay for the health consequences of your choices even more than what they do now reduce the size of the problem?

As for spending on maids and special needs teachers, the question is: are these not problems which are better tackled with targeted help instead of a blanket 90% subsidy for all healthcare?

In the final part of the series, the writer begins by arguing that most nations already have universal healthcare, and points out that our current obsession with capping government healthcare spending is myopic as it fails to look at the burden that diseases impose on society.

He then argues that under the SDP system, healthcare spending will be more cost-effective "because SDP’s model is patient-centric, focusing heavily on alleviating patients' hardships, improving their well-being, and preventing their future health risks". However, he does not in fact tell us how this will be the case.

With regards to sustainability of the system, the writer believes that it "is sustainable as long as the universal healthcare system gives evidence-based policies due consideration and priority".

He summarises his series into the following two points.

1. Universal healthcare coverage is a "no-brainer", but the exact features of the system should be guided by evidence and not ideology, and the system must be evaluated continually after implementation.

2. When evaluating a healthcare system, we must not look only at THE, but also at the reduction in CIHE and CIHS.

On the whole the writer's arguments follow each other: if you have a universal healthcare system, people will have better access to healthcare and better health outcomes, and this will bring you returns in the form of lower loss to the economy and society downstream. Excessive cost can be prevented because the expenditure will be guided by evidence and not ideology.

Sounds great so far (except for the points which I disputed earlier).

But while the writer claims to be non-partisan, it is clear that his argument is guided by ideology when he wrote that (emphasis mine):

"the division in Singapore over universal healthcare is actually a division between the “I” group and “We” group. The “I” group is selfishly looking at just their own world in terms of how much more they must pay, how much longer they must wait in the queue, etc.

The “We” group gives greater priority to impact of healthcare polices on society at large. They are concerned with how many more lives can be saved, by how much hardship of patients and their families can be reduced, and so on."

Given that the whole "National Healthcare Plan" is guided by ideology and aimed at - let's face it - winning votes, how much confidence can we place in the executors of this system that its operations will be guided by evidence and not ideology?

Finally, I don't really see how our current healthcare system is different from the writer's vision of a healthcare system that is "patient-centric, focusing heavily on alleviating patients' hardships, improving their well-being, and preventing their future health risks", where the government is cognisant of CIHE and CIHS, and where operations are guided (in theory) by evidence and not ideology.

Indeed, I think the only difference between the current system and what SDP is proposing is not *why* we do it, not *how* we do it, but *who* pays for it.

How you run a healthcare system can in fact have nothing to do with how you pay for it - you can have a system where individuals pay for their own healthcare but where providers are guided by evidence, and you can have a system where patients do not pay out of their own pockets but where treatment is not guided by evidence. The writer's mistake in his entire argument is that he assumes that a "universal" healthcare system where the bulk of payment is subsidised (as proposed by SDP) will mean that policies will be guided by evidence and not ideology (when in fact the two can be totally unrelated), that people will access healthcare more appropriately (something which SDP itself believes is not the case), and that CIHE and CIHS will be reduced; and the reason why he makes that mistake is, I believe, because he is guided by ideology instead of evidence.

18 comments:

theonion said...

That's the problem, people do not recognise the ideology behind, they just want a free meal.

regards

Paul Ananth said...

I keep asking Gary to show me people who deliberately go and get cancer or congenital diseases so they can enjoy the "free" care he thinks we offer. Has not shown me any examples...still waiting!

angry doc said...

Well, finally the kid with leukaemia gets a break...

As I keep telling Prof, just because someone did not deliberately get a disease does not mean he is entitled to having someone else pay for his healthcare needs.

In any case, there is nothing in SDP's proposal that denies subsidy to people who put themselves at higher risk (non-compliance to advice, smoking, diet, high-risk spors and sexual behaviour), so intent and accountability are not the issue here; unless SDP is saying only those who do not "deliberately" get sick are entitled to subsidy?

(Anyway, Prof, since you are a contriutor to this blog, you can just log in and post your comments without waiting for approval.)

Anonymous said...

I hope u are not refering to me. I am not angry doc. Anyway, it is the other way around.

There will be people who wants to be screen for all sorts of cancer/congenital anomalies.

Unless screening is not covered and only treatment is covered or there is enough copayment.
But too high a copayment will reduce both appropriate and inappropriate care.
http://www.rand.org/news/press/2009/04/28/copayments_treatment.html

Looking at the behaviour of those with CSC card or private insurance, the behaviour is really different from those who have to pay.
CT head for head injury?
Why not CT whole body?

Do fasting blood glucose and blood lipids for screening? why not check kidney/liver as while?
After I show the patients the list of blood tests (at least 100) and tell them to test everything would take 1 litre of blood?

Anyway, my point remains.
Increasing access without increasing capacity is plain stupidity.

My unpublished letter to strait times :(

I refer to the letter "SDP defends health-care proposal, Friday" and is appreciative of the efforts made by Singapore Democratic Party to come our with their proposed health-care plan. However, I am uncertain about some of their arguments for their proposed health-care plan.

Firstly, they proposed that corporate tax be increased and their rationale is that companies will enjoy savings because they no longer bear the costs of their employee' health care under the plan. This argument is valid if only working employees are covered by the proposed health-care plan as currently companies only cover the medical expenses of their employees (medical expenses up to 2% of total remuneration are tax deductible). However, the proposed health-care plan will cover both working and non working Singaporean which would pose an additional burden on companies especially small and medium enterprises.

Secondly, a single-payer, universal health insurance system may be superior to a multi-player, non-universal health insurance system but whether it is superior to our current system is still debatable. Insurance promote "moral hazard" where those who are insured tend to over-consume health services compared to those that were not insured. Having a copayment that is low will not help to deter this problem while having a high co- payment will reduce both appropriate and inappropriate care. In practice, you end up with more patients straining our public healthcare system.

Thirdly, our 3 M system may not be perfect but neither is the new proposed health-care proposal. Someone once said "Healthcare is a bottomless pit but the resources to meet those literally endless worthy needs are limited, so society must set its priorities and draw the line somewhere. The job of government is to ensure a minimum acceptable level of care for all and beyond that it is for individuals to set their own limits with their resources" Using medisave to fund our healthcare needs or to buy private healthcare insurance should be left to individuals.

Lastly, moving forward, our 3M system needs to evolve to allay the concerns of Singaporeans. Medisave need to grow at a rate higher than medical inflation (2011, 8.4%) or at least inflation (2011, 5.2%) to ensure that there is adequate money to fund future healthcare needs. Medishield may need to expand to cover non catastrophic illnesses but the flipside would be higher premiums. Medifund may want to be less stringent so that more can qualify but the flip side is that more money is needed to ensure it is sustainable. In summary, we need more funding to ensure Singaporeans do not fear growing old and falling sick. The recent move to increase healthcare expenditure is an enlightened move by our government.

The real Gary (I am not angry doc!)

angry doc said...

Thank you, the real Gary.

For some reason SDP (and Prof) seem to think that just because some people are not directly responsible for their illness, others are therefore obliged to pay for their healthcare needs, and yet others who are somewhat responsible for their own illness should therefore also benefit from subsidy.

They believe that the problem with chronic care management is not cost but non-compliance, yet at the same time argue that reducing cost/payment will result in better health outcomes. Classic example of doublethink where ideology trumps logic.

The fact is neither the current system nor the SDP system have the moral courage to hold people responsible for their own health and healthcare cost. The current system seeks to minimse the unfairness of passing individual healthcare costs to others by imposing a higher copayment than that proposed by SDP's, but they are essentially the same creature.

Anonymous said...

Why not have a system where you assess whether this person might have contributed to the cause of his illness. If he has then he has to pay. If cannot pay, then forcefully discharge and leave them to die.

If found not to have contributed then it is subsidized.

This whole argument by angrydoc is flip flopping between the zealous desire not to pay any tax or pay for anyone besides himself and justifying what that is really called ; selfishness.

No need to justify.

SDP's policy is about giving and sharing. Yes it "forces" people to give and share, but we also "force" people not to kill other people or rob and rape too. As I said before if you really DIE DIE WANT TO BE SELFISH then just don't pay your taxes lor.

angry doc said...

You are right: people who are selfish do not need to justify themselves, because they are merely stating their rights over what is theirs; it is people who claim a right over other people's possessions who need to justify themselves.

Ask yourself: why does my selfishness offend you so much? It is only because you think you are entitled to something I have which you want. Your false sense of entitlement is what offends you.

Anonymous said...

"The fact is neither the current system nor the SDP system have the moral courage to hold people responsible for their own health and healthcare cost."

I suppose the ideal system can hold people responsible for their health, which means you will have to pay for the services you consume and not let others pay for you. But who is going to handle the end result if you cannot pay for them? If a chronic smoker who ended up with end stage COPD comes to A&E with an acute exacerbation but cant pay for the treatment/ admission, do you leave them at the doorstep wheezing away? Surely he is responsible for his current state of health by his smoking habit. I would love a system with the "moral courage" to say "NO" to these people who cannot pay for their treatments, to be far to other taxpayers like us who would have to pay on his behalf. Even if it means he ends up dead at the doorstep of A&E.

PS: I also support all citizens paying egual taxes regardless of their income. Afterall, we all share the services equally, why should the rich pay more while the unemployed pay zero? You live in the country, you should pay taxes. ( kinda like entrance to universal studios, without the children and senior citizen discount )

Anonymous said...

It's not true that everyone uses services equally.

Take the police for example. Suppose someone comes to your house, burgles your place and gets caught. He goes through the justice system and is prosecuted, etc.

In a purely pay-for-service system as advocated by angrydoctor, you will be billed by the police (for the number of hours spent on investigation), the court (for the legal process), the attorney-general (for the number of hours the DPP spends on the case), etc.

Why should people not involved in the case pay for the investigator, the DPP's hours, the court session, etc?

Unless there is some kind of risk pooling is desirable but we can't have that, can we?

Anonymous said...

Yes we should do away with police. People should just install their own security alarms linked to private security guards etc. As it is some people DO THAT and STILL pay taxes for police services they do not use!

Same for the army. What right do other countries have in trying to take away what is not theirs?

Well at least this seems to be the overriding "no need for justification" as it belongs to me anyway argument.

Anonymous said...

"Ask yourself: why does my selfishness offend you so much? It is only because you think you are entitled to something I have which you want. Your false sense of entitlement is what offends you."

Actually it is not the case. It is a case where you are enjoying a lot of entitlements in a system that works because WE all pay for it TOGETHER. However you are proposing that YOU do not pay (because the money is your entitlement).

There are many things which our tax dollars are used for besides healthcare. Defence, education, road works, infrastructure etc etc.

The predominant argument of "my money is MINE and no one else should have a right to it" is fair enough. But if everyone worked that way, there will be many more problems.

Point is, Singapore spends around 1% of the GDP on healthcare? So the tax dollars you actually pay for healthcare isn't all that much. How come nobody is complaining about how much they spend in defence? It's still MY money if they take it and spend on defence right?

Anonymous said...

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_786206.html

Just wondering, but if someone who lives in the North eg Woodlands who never uses this new $4.3 billion undersea expressway.....no need to pay taxes can or not? It's my money what!

theonion said...

Paul ananth

I have seen too many cases where healthy colleagues goes to clinics to top up on their supplements or common drugs or in addition, certain hypochrondiacs look for tests after tests.

slave said...

Sigh.

@Anon at 06 April, 2012 11:19
So if I am standing in front of you and I take a knife and cut my hand and tell you that I have no money to buy plasters or antiseptic cream, will you buy for me? Maybe you're kind enough and do pay for my necessary treatment. But if I do it again, and again and again? Its the same for patients who smoke and binge on alcohol and drink and drive and gorge themselves on fat.

@Prof - What if I did not cause my own injury, but I come and tell you I have cancer (with no modifiable risk factors) and I'll die in 1 year without surgery but I can't pay for it. Will you pay for me? A total stranger?

If you don't, can I blame you being selfish?

You may say, that you will agree to pay for me now, if I agree to pay for you next time if you have any disease. This is risk-pooling. If you think like this, then buy an insurance plan that suits your needs. It's the exact same thing.

IMHO, with regards to medical subsidy, it should be prioritized for those who are really in the bottom 5-10% (in terms of socioeconomic status), NOT based on who's to blame for the disease. Whether you are to blame for the disease you have (e.g. smokers with lung cancer or alcoholics with cirrhosis), or you are just damn suay, it doesn't change the fact that at the end of the day we EACH are responsible for our OWN healthcare. We should set aside money for the unexpected disease, we should buy insurance to try to mitigate costs ourselves. And of course, we should try our best to reduce our own risk of GETTING the diseases.

The role of the government should be to help those who even if they wanted to, cannot possibly even come close to saving for their own healthcare. They did not have a choice to not save enough or to not plan ahead because they were living day to day already. With this in mind, I think if anything increases in health expenditure should be made towards medisave and medifund (especially the latter)

For those of us here commenting on this blog with high speed internet connections, it is likely that if you wanted to, you could pay for comprehensive health insurance. Its just a matter of giving up luxuries that we have gotten used to and now take for granted as necessities.

Anonymous said...

If I hang out with bad company and keep leaving my door open and getting robbed and I ask you to pay for a police force to keep me safe would you pay?

If it is not my fault and I got robbed and I say I have no money to pay for a private security force, and ask you to pay for me would you pay?

We should abolish the police and armed forces and just pool to buy insurance in the event people get murdered they can claim insurance. And if they are robbed they claim insurance too. And if a neighbouring country invades, massacres the population and ransacks the country's assets, can also claim insurance.

Insurance is so wonderful

slave said...

I see your point, but the parallel cannot be drawn strictly.

Contrary to what has been discussed here, I feel that the 'service' of the police and armed forces (especially that of the army) is not mainly the tangible service rendered, but the deterrent. (at least that's what I have been brainwashed into thinking by the government lol)

We don't honestly believe that a patrol of three 18 year old NSFs in changi airport with a magazine of 4 live rounds not even loaded can effectively neutralize a terrorist who is intent on blowing something up do we? but the service they render is to deter such events from happening. Same for the police and the law. Singapore has a relatively low crime rate not because our policemen are better shooters or faster runners than those in the US or Europe, but because the law and punishment they represent has been effective in deterring such crime.

I pay taxes 'to fund' the police and the army not primarily because they might one day come in handy to find the guy who stole my wallet, but because I'm constantly using their 'passive' service. the same way that although I may not directly 'use' public goods such as street lamps, roads, and the port or airport, I am benefiting from them constantly.

Moving back to something more relevant - If i pay taxes for public health initiatives : ensuring clean water, nation wide vaccination, dengue prevention programs, good sanitation, etc etc everyone benefits.

But the benefit to society when the nation pays for an individual to receive specific care in relation to non-infectious diseases is very very small. you may argue that increased illness will lead to decreased productivity in the economy etc., but the solution to that is NOT increased healthcare (as that would be just covering the symptoms), but improved education of what CAUSES these common conditions like heart attack, blocked vessels, diabetes mellitus (which causes SO much loss productivity), and engaging in PRIMARY prevention to well, prevent them.

Providing tertiary healthcare free or heavily, again, IMHO, serves only to win votes.

angry doc said...

"If I hang out with bad company and keep leaving my door open and getting robbed and I ask you to pay for a police force to keep me safe would you pay?

If it is not my fault and I got robbed and I say I have no money to pay for a private security force, and ask you to pay for me would you pay?"

I would like to say: no, and no actually, but...

The reason why we don't privatise all police and military defence is I suspect partly to do with the practicality of doing so. The other argument as made by slave above is that crime can be seen as an "infectious disease" - broken window and all that stuff, you know? Infectious disease is a reluctant exception I accept in my position on individual liberty, so while I accept that I will pay tax to fund your TB medications, I also expect that you be compelled to take the medication under supervision, on pain of penalty (the same applying to me if I had TB, of course).

The idea of leavng one unit in a block of HDB flat undefended by the army because the owner refused to pay his defence tax is just... well, I don't see how we can do that.

Someone asked if he should be made to pay taxes for the construction of a highway he would never use; well, many places practise the collection of a toll, which would be easy to implement in our context where ERP already exists.

Anonymous said...

When do doctors in singapore get into residency programme? i am aware that you could get into it after a year of housemanship. but do most people manage to secure a place?