How ObamaCare Will Kill Americans

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In their scholarly paper, Vernon and Goldberg map the range of CER-induced reductions in R&D spending into their “opportunity costs as measured by: (i) forgone life years, (ii) quality-of-life improvements, and (iii) dollars.” They make two critical points: 1. The productivity of investment in pharmaceutical R&D is remarkably high—perhaps one of the most productive uses of capital in the economy, and 2. Firm incentives to invest in pharmaceutical R&D will likely be quite sensitive to the cost of conducting CER prior to and a condition of reimbursement. As a result, incentives will be adversely affected. “Taken together…the economic cost of new CER regulations will have a deleterious effect on social welfare, doing far greater harm than good.”

Those favored CER assume that many new drugs, devices, and technologies greatly boost healthcare costs and that all healthcare spending in the country could be cut if the lowest spending in the county could be adopted nationwide. Yet evidence shows “the extraordinary economic value attributable to medical and pharmaceutical innovation…and that medical innovation has yielded significant increases in life expectancy” and “actually increases in the efficiency and diffusion of medical innovations…have allowed humans to work less while producing more and therefore living longer” often with less cost.

“We believe that public policy affecting drug development investment incentives consistently fails to capture the value of this well-documented—and increasing—contribution of medical innovation to human progress….CR is at odds with empirical evidence that medical innovation—not regulation—increases life expectancy and reduces the cost of services needed to obtain such gains,” the study said.

“CER can delay time to market and reduce the rate and extent of technological diffusion….The impact of CER found the process delayed use by over two years. CER use, the study authors said, as part of reimbursement decisions in cancer was associated with 60 percent fewer medications being made available than when such reviews were not used.

“Most importantly,” the authors said, “CER will be used by [state] health exchanges [under ObamaCare] and the government in determining what health services and products will be covered under the new health care law.” The evidence can lead to “only one conclusion,” Vernon and Goldberg wrote: “CER regulations pose a clear and present threat to social welfare…a very costly one indeed.”

In addition, the authors added, government policies or regulations that impede medical innovation threaten the future solvency of such financially shaky programs such as Social Security and Medicare.

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  • davarino

    It looks like they are going to reduce the population through the back door rather than outright slaughter. The environmentalists must be very happy.

    If only we could force the politicians to live under the same rules that the rest of us schmucks have to tolerate, but they are special, they deserve the good stuff cause they work so hard for us.

  • Steeloak

    Nope, no death panels here! Nothing to see here folks, move along!

    • Dennis X

      Yeah , that $5,600 vocher is really going to go a long way for seniors, NOT!

  • onewiththemeans

    It really concerns me to see just how ignorant outr young people are to the perils of atheistic socialism. Our public schools have been a huge success in throwing freedom. morality and human dignity under the bus. Yep, keep paying those atheistic socialists of our public schools our tax payer dollars to ensure the demise of the greatest nation this world has ever known. So short-lived, our prosperity. Generally speaking, our children are idiots and it is all our fault – complacent fools we are.

  • Barbara

    Now Obama is a doctor

  • Jim_C

    Can you say "re-election iwill be a cakewalk?"

    • USMCSniper

      Hey Jim C, read the Drudge Reaport about all the black teen thuggers that are rioting robbing and assaulting people at beach resorts in Miami, Boston, flash mobbing stores in Philly, Chicago, New York Miami. Need to have some selective culling by don't you think?

  • sedoanman

    “'If there’s a red pill and a blue pill,' he said…"

    "If" is the biggest word in the English language.

  • glenn

    As a health agent for all ages I really do not like the President's plan. That said, there are tremendous costs associated with end-of-life for our seniors on Medicare. I have seen estimates of 30% of Medicare total annual costs are spend ont he last three months of patient's lives, or 20% on the last two weeks. As conservative as I am, the reality is still there and we need to deal with it. Somebody needs to address the issue without imposing the beauraucratic "death panels" we have heard about. My wife and I hit Medicare this year and I don't want my costs transferred to my grandchildren, even if I have to wait, which I probably will not have to worry about. We have got to do something.

    • Howard Long

      Glenn, do not retire.
      Bismark imposed that to make room for younger men in his stagnant economy.
      I am 84, helping patients better than ever and trying to persuade people like you
      not to rot. Use your muscles and head, so as not to lose them.

      Howard Long MD MPH

  • R. E. Brossman

    I would rather go out in a folash during a major war than be lied to and rationed to death.

    Ibet there are millions just like me.

  • R. E. Brossman

    That should be "FLASH" not folash.

  • R. E. Brossman

    Now that I have the soapbox, Obama and most of the world's dictators know they have to reduce their populations or else a so-called Arab Spring is going to eventually pop up and kill them.
    Starting a nuclear war has the advantage of rapidly reducing population; hence unfunded liabilities, so I look for Obama to try this pproach before his is hung out to dry.