(08-15-2020 12:12 PM)RiceLad15 Wrote: I feel like that’s a good comparison, actually.
Payment to send a letter is the same, regardless of the density of delivery. So USPS makes more money if they can deliver 1,000 pieces of mail in a denser suburb in an hour than say 50 in a rural area in an hour.
So it’s also about volume of service in both instances - greater population density means more customers and more efficiencies in both instances.
Sure... if you assume that the delivery of most mail is as important as the delivery of healthcare. That's my point is that MOST mail isn't remotely important... and that that IS important is most often (in one way or another) funded by the government anyway.
Remove the subsidy for junk mail and keep it for government mail. If Junk mailers still want to deliver it to dense populations, that's fine... the post office can charge them a penny more, and reduce the need for government subsidy for prescriptions to BFE.
(08-15-2020 12:16 PM)RiceLad15 Wrote: My understanding is that USPS is also struggling due to some funding mandates imposed by Congress associated with retirement benefits.
Regardless, I think your argument makes sense, but isn’t realistic. There will need to be a significant transition period where two things happen: broadband is actually extended to all parts of America, and technology to use/access needs to equally penetrate those areas.
If we’re talking about whether we should be subsidizing the USPS in 20 years, then I can understand that position. But since we can’t convert all necessary aspects of USPS overnight, we must continue to effectively fund and operate it until a digital alternative is developed.
So, again, why not both?
I guess i wasn't clear about my 'more' comment.
I've suggested a way for the government to subsidize 'necessary deliveries'... without having to subsidize NON essential deliveries.... just to make sure that people in rural areas get daily delivery of their junk mail just like people in big cities.
As to the pensions, Revenues for all other 'delivery' services have doubled in the past 10 years or so, while USPS has remained flat. Revenues are not impacted by pensions and benefits.
But you DO bring up one of the problems with government sponsorship/co-opting of private enterprise. The company must play by government rules which other delivery services do not. We're not talking about general employment rules, but specific 'we work for the government' rules.
(08-15-2020 12:30 PM)RiceLad15 Wrote: It sounds less like Medicare makes this worse, and more like Medicare doesn’t address this problem. Or are you saying that, if Medicare reimbursed at the same rate in all areas, providers that currently operate on the city would relocate to rural areas?
Does Medicare keep private practices from opening and operating in rural areas?
Your comments here demonstrate to me that you don't understand what either of us are saying... which is why you don't see this as a medicare problem.
Let's start with this. Medicare sets the standards. Medicaid, Marketplace and Commercial all follow them. If they don't address it, then it basically doesn't get addressed.
That said, let me show you the simple math of RU's example... just as an example
Medicare pays a GP $100 to remove a skin lesion. They pay a specialist $200 for the same service. Because of the volumes, the GP can fill his day without that, and there is plenty of volume now for a specialist as well. LA county (like almost every urban center) is an expensive town, so they get a 25% positive adjustment... so they actually receive $125 and $250.
The rural county doesn't have a specialist... So on the surface, they pay a GP $100 to remove the lesion... however... because of the lower cost of living, they get a 25% 'hit'... and they only get $75. Now in hard to staff areas, they may bump them back up somewhat... but that requires big studies. 'Cost of living' is a much more readily available and trusted measure than is 'hard to recruit/staff'. They might get a 10% bump or more likely, they get something like a one-time bonus... most often funded through medicare/the state, not medicaid/the feds.
$250 vs $75. That's how they make it worse.
Now throw this in.....
You're an MD... There is more to living in Fresno vs LA than simply cost of living.... and Fresno isn't a tiny place. Culture, peers, diversity, beaches, arts... easy opportunity to participate in CME or an opportunity to develop a specialty practice... the availability of qualified staff and local training for them... I mean, the list of differentials is very long...
Do they stop them from opening? Of course not. That question is meaningless. The question is, do they do anything to 'equalize' the desire for Ben Stone to be a GP in Grady as opposed to being a plastic surgeon in Beverly Hills? Every small town doesn't have a Vialula. More often they have Nancy Lee's.
The reason this matters is because they demand the same quality out of both. If they don't deliver the quality, the reimbursement goes down.... which defeats the whole purpose of the location adjustments, unless they also pay to recruit nurses and staff and fund prettier/better hospitals etc etc.
It's like g5 vs p5. Yes, it's harder to win in p5, but you're easily arguably better off being a losing team in p5 than a winner in g5.