Health Care

The New York Times

May 25^th, 2012

Dennis Rosen

http://www.nytimes.com/2012/05/16/opinion/when-competitive-bidding-hurts-patients.html?scp=10&sq=health%20care&st=Search

Summary:

The Obama administration has recently released a statement regarding the adoption of more competitive bidding for Medicare, which will start being applied to Medicaid and other health programs if it successfully reduces costs. However, the author warns, although the usage of competitive bidding may reduce the cost of equipment, it does not ensure a better service. Because many equipments require extensive explanation about its usage, companies send out technicians to explain to family about how to operate. However, with competitive bidding, the lowest bidder, who may offer the same equipment at a lower price, may also have worse in terms of technician service.

Connection:

When Obama had first entered the White House, one of his first priorities was to create a nationalized health care program. Although that has repeatedly failed, he has not surrendered his efforts. Mainly critized for its costs, of the reasons Obamacare had been unpopular with so many was due to the high costs involved. By adopting a competitive bidding system, Obama is attempting to lower the costs of health care and possibly pave way for his future plans.

Reflection:

It is not the first time competitive bidding has been used by the government to lower costs. For instance, many local and state governments hire the lowest bidder to construct roads, schools, and parks. Although this helps to eliminate many of the costs involved with the inefficiency of the government, competitive bidding has also led to problems regarding accountability.