Senator Debbie Clary

Healthcare Newsletter

Debbie.Clary@ncleg.net  919.715.3038

From the desk of Senator Debbie Clary…

First off, I hope everyone had a fun and safe Halloween weekend!  Since this is the last newsletter before Thanksgiving, I would like to wish everyone a Happy Thanksgiving!  Please be safe during any of your travels.

As a North Carolina State Senator, I do not have a vote and I typically do not get involved in issues outside of the realm of my work.  However, I am receiving an inordinate amount of calls and emails about the national healthcare debate.  I would simply like to share a few thoughts with you!

My thoughts on the national healthcare debate!

You likely have seen a reference to “rationing of care” in the media regarding Socialized Medicine.  In particular, regarding Socialized Medicine, you likely have seen “rationing of care” in regards to the elderly.  The phrase/concept of “Rationing of Care” seems to confuse many people.  Rationing is an Economic phenomenon.  Maybe this will help you explain the concept to friends:

(1) The demand for health care leads to a supply of health care.  That is, a market has been created,

(2) Demand and supply for health care intersect at price,

(3) “Price” is how a market rations. 

In regards to Health Care, if you add 19 million uninsured to the current health care system, demand suddenly increases (Demand Shock).  Supply (health care providers, hospitals, etc.) can not adjust quickly enough to the sudden increase in Demand.  Hence, price rises as the market “rations” through price until which time Supply can adjust (build new hospitals, train new doctors and nurses, etc.).

However, price will not be allowed to rise under Socialized Medicine.  If the mechanism “price” is distorted, then true rationing occurs (long waits for services….it’s the only other rationing technique available if price is not allowed to rise).

Rationing goes a step further:  Supply, in the medium and long run, will be constrained regarding adjusting to the increase in Demand as price is distorted.  Hence, Supply will not adjust (no new hospitals built, decline in doctors and nurses, etc.).  Supply will not increase due to price distortion leading to Supply Constraint, which, once again leads to continued rationing.

In regards to the elderly and rationing, it becomes more of a Political-Economy argument.  The argument goes like this: if a liver transplant is needed by a 30 year old and a 70 year old, and if the Government is involved and has panels that determine “need,” the 30 year old gets the nod.

Another part of the argument for the elderly is: rationing will cause long waits for service, which may take so much time the elderly expire during the long wait time.

The final part of the argument is Medicare is being raided for money to pay a Socialized Health Plan.  The reduction in Medicare funds means health care providers will be reimbursed less.  The lower reimbursement is a form of price distortion meaning rationing for the elderly gets ratcheted up to another level.

Want to see back issues of Senator Clary’s Newsletters or view interesting News Clips? …

Please visit our site at:  www.senatorclary.com.

Monthly Mailings

Now that the session has come to an official adjournment until May, 2010, we will be sending the e-Newsletter monthly instead of weekly.  During the interim, I am in the district working on constituent issues as well as my business, Millennium Marketing and MMG LIVE Networking.  The Raleigh office will remain open Monday thru Friday with my Legislative Assistant, Misty Greene.  You can reach us at debbie.clary@ncleg.net or debbie@senatorclary.com or if you prefer to call, the number is 919.715.3038.  We check our mail daily and will get back to you as soon as possible.  I would like to emphasize how thankful I am for your readership, comments, and input throughout the “long session.”

Thanks as always for your support and for the honor and privilege of serving as your Senator!