It’s possible that price cuts lead to more care, not less

by Adrianna McIntyre

I’ll be back to my irregularly-scheduled, home-based musings soon, but here’s another guest post on the The Incidental Economist.

We can thank former Vermont governor Howard Dean for reviving the “IPAB-as-a-rationing-body” meme again (you should read response pieces from Peter Orszag and Jonathan Cohn). The reality is that the advisory board is expressly prohibited from rationing care; all it’s really empowered to do is fiddle with reimbursements, and only if Medicare rates climb above a certain speed (they haven’t yet). But what if provision of care went up, not down, when reimbursements are cut? That’s what a new NBER paper (ungated) suggests, based on Medicare reforms and lung cancer treatment.

Full post here.

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Adrianna is a graduate student in public policy and public health at the University of Michigan. Follow her on Twitter at @onceuponA or subscribe to the blog.

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