AAPS Files Law Suit against Sebelius

AAPS vs. Sebelius.

The Association of American Physicians and Surgeons filed a lawsuit. It was the first medical association to do so.

2 responses

I understand wanting to make health care more affordable. I don’t understand cutting the pay of primary care physicians. Could we not have found some other way to save the money?

Many proposals to cut costs on government programs are like this: ‘if we just pay (doctors, cops, teachers, etc.) less, then we will be paying less money!’ This view is certainly true in the immediate term (and probably also true in the time-frame of an election cycle, or politicians wouldn’t do it so much.
The problem is two-fold: (1) It’s based on a static understanding of the economy; paying doctors less now means fewer doctors in the future. (2) It is being made by a vote rather than market forces; that ignores all the information inherent in the market. It might be the case that doctors should be paid less, but the only way to know is to see what consumers are willing to pay for. If patients choose to substitute other options (such as going to foreign doctors or seeing nurse practitioners), they are expressing that there doesn’t need to be so many doctors. The result will be that fewer people will become doctors (or a specific kind of doctor) and their wages will rise again. When politicians reduce doctor pay by fiat, they send the signal that there should be fewer doctors without concern for whether that is really the case.

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