I’m Not Too Concerned about the AMA’s Opposition to RepubliCare

There’s a lot to dislike about Paul Ryan’s health care plan. But the American Medical Association and the American Hospital Association’s oppositions are not it.

Both ObamaCare and RepubliCare hope to cut costs. The AMA, the largest association of doctors, and the AHA, the largest association of hospitals, directly stand to lose out on any cost cutting.

They want more hospital visits, higher payments, and more treatments. It’s their business model.

I’m not at all saying that all doctors are out to just make a buck off your illness. Organizations tend to behave very differently from the people who make them up. Bad incentive structures and lobby-lead rule rigging can lead to organizations that want what no one individual wants.

That being said, the AMA and AHA mostly dislike this bill because it will cut payments to them. They aren’t in the news because they’re saying this is bad medicine, but rather because they’ve gotten used to charging $25 per Tylenol and want to keep it that way.

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