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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (9646)	9/21/2009 12:38:03 PM
From: TimF	Respond to of 42652

...Exhibit 1 illustrates the impact of introducing U.S. price controls on the longevity of cohorts ages 55-59, using our baseline parameter values. It shows that the introduction of price controls would reduce life expectancy by two-tenths of a year for Americans ages 55-59 alive in 2010 and by one-tenth for Europeans ages 55-59 alive in the same year. In percentage terms, these correspond to 0.8 percent and 0.7 percent declines from the status quo. The longevity effects are larger for the older cohorts, because the effects of price controls take time to set in. The early cohorts are not exposed to innovation reductions for a number of years. This dampens the impact on their life expectancy. By 2060, Americans and Europeans in this age group lose almost 0.7 years of life expectancy as a result of U.S. price-control implementation. On the benefit side, U.S. price controls reduce spending on dr ugs and medical care. Exhibit 2 quantifies this effect. Price controls adopted in 2005 would reduce lifetime per capita health spending by $9,000 in the United States and $400 in Europe, for those ages 55-59 alive in 2010. Reductions in Europe come about as a result of reductions in life expectancy. The U.S. effects combine life expectancy reductions with direct reductions in cost. For those ages 55-59 alive in 2060, Americans can expect $14,400 less in lifetime spending; Europeans, $2,100 less. Exhibit 3 shows that U.S. price controls have very modest benefits in the present but substantial costs in the long r un. For the 2010 cohort, price controls pro-duce $1,100 of net per capita benefit in the United States but $8,000 of net per capita cost to Europeans in that cohort. By 2060, the cohorts ages 55-59 lose $51,000 and $54,000 in the United States and Europe, respectively... from US Pharmaceutical Policy in a Global Marketplace rand.org H/T Megan McArdle