Preventative care saves money? C’est impossible, Madame Speaker! For weeks, we on Campaign Desk have been pointing out this fallacy, but members of Congress seem reluctant to embrace the evidence. That’s a rather strange stance for elected representatives, who’ve been busy telling their constituents that health care costs can best be reduced by evaluating the evidence and paying only for what works. Apparently, evidence is sometimes a good thing and sometimes a bad thing, depending on which point works for your argument. In this case, the evidence is this: Preventative care does not—does not—save money. In fact, it actually costs money.
On the News Hour with Jim Lehrer last night Judy Woodruff interviewed Pelosi at length, mostly about health care—unsurprising, since health reform is currently Topic A. What was surprising was what Pelosi told Woodruff:
One of the challenges we have is, we know that there are tremendous savings in going forward with the preventive piece, hundreds of billions of dollars. The Congressional Budget Office, the accounting office here, doesn’t give you any credit for prevention. But we are so sure about that that I don’t know that we’ll ever even need the pay-fors because the prevention will provide so much saving.
Wow! That’s quite a statement. The Speaker of the House is so sure that preventative care is going to save billions of dollars in medical expenditures that Congress won’t even have to look for other money to cover the costs for subsidies to help people buy insurance. (Remember, the pay-for rules require that every time Congress passes a new program, it must find offsetting revenue from another pot.) Now here’s the problem: What happens when these savings don’t materialize, as the evidence suggests they won’t? Will they magically appear, like the rabbit pulled from the magician’s hat or the ghosts in Harry Potter land? If the billions don’t appear, what trick will Congress use to cover the shortfall—cut benefits for the millions who can’t afford the coverage they will be required to buy?
In June, one of our Excluded Voices interviews featured Rutgers professor Louise Russell, one of the country’s leading experts on preventative care. “It certainly is not the solution to anything in terms of medical costs,” she told us. Russell also said: “It’s so easy for people to misunderstand the issue. I hesitate to think that people who say preventive care saves money are deliberately misleading. I think most of them don’t understand it.”
In a subsequent post, Russell said she agreed with the CBO’s decision not to score or evaluate preventative care savings. “One way to look at the review of studies on prevention,” she explained, is that “for every one preventative intervention that reduces medical spending, there are four that increase it.”
Asked to offer advice to reporters, Russell said that the press should challenge the idea that preventative care saves money. But, last night, Woodruff allowed Pelosi to foster that illusion. By not pushing back on the point in a follow-up question, Woodruff left the impression with her viewers that Pelosi had indeed pulled a rabbit out of the hat. No doubt reporters trailing Congressmembers during the August recess will hear lots about how prevention saves money. When they do, it’s important to remember what Louise Russell said.
Uh, is the news that Speaker Pelosi is tactically inept, practically brainless, an intoner of bumper-sticker slogans, and a politician who could give Tom Delay lessons in partisan billingsgate some kind of breakthrough at CJR? I can't help comparing the coverage of this unpopular Speaker, a Botoxed natural for ridicule by editorial cartoonists, with that of Newt Gingrich a decade before her. The fact that the mainstream media avert their eyes from reporting much negative about Pelosi - a symbol of the decline of California over her career - is another piece of evidence of the intimidation of the press by 'identity politics' people on the Left. If Pelosi were framed by the same standards as Gingrich, the PC people would scream sexism, and the MSM is very sensitive to cries from the Left. Those people are their urban friends and neighbors.
#1 Posted by Mark Richard, CJR on Fri 31 Jul 2009 at 12:19 PM
You cite one person!? On a Journalism cite. I get you don't like the speaker, but there is a little thing called google you might have consulted before you get all expert-y cuz you read something by a Rutgers Professor.
"According to the 2007 Milken Institute report, An Unhealthy America: The
Economic Burden of Chronic Disease, the implementation of a national effort
focused on prevention, early detection and chronic disease management could
save the country hundreds of billions annually, with savings surpassing a
trillion dollars annually in about 15 years".
http://www.reuters.com/article/pressRelease/idUS194195+18-Jul-2008+PRN20080718
#2 Posted by Matt, CJR on Sat 1 Aug 2009 at 01:33 PM
The Milken Institute report, “An Unhealthy America,” looks at only half the picture. It estimates the savings from reducing the incidence of 7 major diseases, but not the costs of achieving those savings. For a review of hundreds of studies that look at both savings and costs, and finds that prevention usually increases medical spending, see the February 14, 2008 New England Journal of Medicine (“Does Preventive Care Save Money? Health Economics and the Presidential Candidates”).
The Milken report also estimates the future wages people could earn because prevention helps them live longer and in better health. This accounts for most of their $1.1 trillion estimate. If realized, these earnings would help pay for the extra costs of prevention, but would not reduce them.
#3 Posted by Louise Russell, CJR on Sun 2 Aug 2009 at 08:16 AM
Why is this concept so difficult for Pelosi and others?
Say we have a thousand people in a room and we know on average 2 of them will get a disease that costs a thousand dollars to treat.
A simple $50 test has been developed that can detect the disease and "save" the 2 thousand dollars in treatment.
It's a humanitarian thing to do to provide everyone with the test, at a cost of fifty thousand dollars and it will prevent those diseases. But do NOT try to sell it on the basis that it will SAVE money because it clearly COSTS MORE, 48 thousand dollars more!
The actual numbers will be different for different diseases and preventive measures, but the concept and conclusion is the same and inescapable - Preventative care does NOT save money. It is a costly luxury that should be debated as such!
#4 Posted by Mitch Bogart, CJR on Wed 2 Sep 2009 at 10:55 AM
Thanks, Mitch Bogart, for putting it so clearly! Your example shows exactly how prevention that looks cheap (only $50 per person) ends up costing more than treatment that looks expensive ($2000 per person who gets the disease).
#5 Posted by Louise Russell, CJR on Wed 2 Sep 2009 at 02:33 PM