It's doubtful that any industry was held in lower regard than health insurance and pharmaceutical companies until Wall Street did them a favor by taking corporate greed and negligence to undreamed of heights. So it's terribly, terribly tempting to dismiss the recent promise by them and other health-related business to hold down the costs of medical care with deep suspicion and cynicism. After all, what was stopping them from showing some pricing discipline up until now? But even if the industry's only goal was to buy a place at the bargaining table as Washington takes its first serious crack at health care reform in more than a decade, that's still an important step.
Doctors, insurance companies and others have derailed health reform efforts from the 1950s on, fearing changes under consideration would hurt them and hurt the medical system. The constant naysaying was a way of arguing that the status quo was better than the likely alternatives. But now the health care system is all but broken and change is inevitable, either by design or after it collapses under its own weight.
We need the health industry at the table just like we need all the other stakeholders. And if the industry bought a seat, it also bought itself some credibility and displayed more willingness than in the past to acknowledge that change is both possible and necessary.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Much of the change these companies are embracing involves making the system more efficient. And lord knows the health care industry has been in need of such efficiency for years. A study done jointly for the centrist Democratic Leadership Council and the liberal Center for American Progress shows that in the boom times of 1995-2005, when productivity gains helped drive economic growth, the health care industry was one of the few to actually see slight losses in productivity. Some industries saw productivity grow by leaps and bounds -- information technology grew a whopping 5.7% a year during that decade -- while the national average was 2.4%. The health care industry, in contrast, lost 0.2%.
Making long-needed changes in efficiency won't amount to any real sacrifice in terms of the industry's bottom-line. But that's OK, too. That really shouldn't be expected at this stage anyway. No smart negotiator gives up things of real value without getting something of value in return. And if health care lobbyists are anything, they're smart. They are proving that again by joining the debate. So what if they felt they needed to be in the room to protect their interests -- isn't that why we're all at the table, to ensure that sacrifices we make are in exchange for something, including sacrifice by other stakeholders? But there's the rub: In the end, will doctors, insurance companies, hospitals and drug companies finally be willing to join the rest of us and make some real sacrifice to help us get where we need to go?
-
Target Is the Worst S&P 500 Stock After Earnings. Here's WhyTarget stock is down big after the retailer missed expectations for its third quarter and slashed its full-year outlook. Here's what Wall Street is saying.
-
Tax Credit vs. Tax Deduction: What’s the Difference?Tax Breaks Your guide to tax deductions and credits, how the IRS treats them differently, and how they impact your tax bill.
-
Will EVs Drive the Vote in Election 2024 Swing States?Tax Credits Electric vehicle tax credits have somehow become controversial. So car buyer attitudes in swing states might make a difference.
-
How Four Recent Supreme Court Rulings Impact Your MoneySupreme Court Some U.S. Supreme Court decisions could affect your finances. Here’s what you need to know.
-
Are Student Loans Being Forgiven or Not?Student Loans The House and Senate voted to repeal President Biden’s student loan forgiveness plan, but does it even matter?
-
Etsy, eBay, PayPal Want IRS 1099-K Relief for Online SellersIncome Tax Companies like eBay, Etsy, and PayPal want Congress to raise the $600 reporting threshold for IRS Form 1099-K to give relief to millions of sellers who use their sites.
-
Student Loan Forgiveness Blocked For Now Due to Court RulingsBiden's student loan debt forgiveness program is on hold until the U.S. Supreme Court weighs in.
-
Student Loan Refunds Are Real, But You Might Not Be Eligiblestudent loans Since President Biden announced student loan debt relief, there has been a lot of talk about student loan refunds, which surprisingly have been around for a little while.
-
What's Happening With Biden Student Loan Forgiveness?Student Loans The Biden administration has cancelled billions in student loan debt through various programs and initiatives.
-
How Congress Might Ease the Pilot Shortagetravel Congress is debating how to fix the current pilot shortage, and one idea revolves around retirement age.
