Sebastian Jones has a piece in Nation Magazine – David Sirota interviewed him this morning on his Denver talk show. Essentially, Jones is talking about a little-understood concept, the conflict of interest.
Suppose, for example, this this was a website sponsored by General Motors, and I did not disclose that fact, and then did safety and performance reviews of automobiles. If I were exposed and asked about it, I would likely say that my judgment is not compromised, and that I am perfectly capable of making informed judgments regardless of my source of income. It might even be true.
But that has nothing to do with “conflict of interest”. That expression refers to something else, the idea of serving two masters. It is inevitable that there will be a situation where the interests of one master, GM, will be at odds with the other, the general public. I cannot help but do a disservice to one or the other.
Jones’s first example is Tom Ridge, in service of the nuclear power industry but not saying so, and recommending that the Obama Administration go nuclear. If we were to ask Ridge about it, he would say that he is putting forth honest beliefs, and is therefore not conflicted. That is the standard response when people are exposed.
Over at Electric City Weblog, Dave Budge put up a link to an Atlantic article that cited a study done of 600,000 cases where people had or did not have insurance. The conclusion of the study was that having insurance does not affect health outcomes. He did not cite the funding source for the study, but with 600,000 follow-ups, it was surely very expensive. Without even glancing at the study, I told him that I knew the results were misleading, for one simple reason: People who have access to health care have better outcomes than people who do not.
But he insisted the study was objective, that it was a null hypothesis, and that I should restrict any comments to the study itself. Kind of pointless. Surely, somewhere in all of that nonesense exists a conflict of interest, and further, I should not be the one to search for it. It is the objective guy, the guy putting forth the study. Who funded it? No word.
But there’s a bigger conflict of interest at work in Washington right now- the Democrats and health care. Too many of them took too much money from AHIP and PhRMA to be objective. But the conflict runs deeper than just the money behind them. It is the private health insurance model itself. The Democrat bill that is being pushed does not deal with the conflict. Rather, it subsidizes the negative outcomes of that conflict. Republicans could not have passed such a horrible bill – such insults are usually dealt upon us by Democrats.
The conflict of interest that the Democrats want to subsidize works like this: We turn our money over to private insurers, they keep a portion of it, and use the rest to ration out health care. Each dollar they pay out in benefits reduces their profit margin. They have the stockholders on one side, and the policy holders on the other. They cannot serve one without harming the other. It’s classic. There is no way around it.
The free-marketeers are resolute and ideologically frozen in cement. They cannot fathom a market solution not working, and hence are blind to this obvious conflict. They have a conflict of thier own – married as they are to an obtuse ideology, they are at odds with reality. Hence they go into their shells, discuss these issues among themselves, and when people like me bring the conflict to their attention, they do what Budge did in this particular debate:
Back on subject. That’s nonsense, Mark. What we can or cannot see you cannot know. And when someone makes a point about an argument being made, an open minded person will take that argument on its merits – not on his ideals.
We know your position on a whole host of matters. We we don’t see is any new thought defending those.
The point of the study, funding aside, was supposedly simply bring to our attention an odd phenomenon, the apparent ineffectiveness of health insurance. It needs examination, I suppose, but let’s be frank: Budge’s purpose in highlighting it was to discredit a Harvard Medical/Cambridge Health study (no outside funding) the that found that 45,000 people die each year for lack of health insurance. He wants to disarm opponents of private health insurance. He has an agenda.
First, first they must deal with an old thought – the conflict of interest. How is it possible for insurance companies to serve two masters? I await an answer, from any of them. I pointed this out. There is no answer other than to eliminate private health insurance. The model does not work.