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Chapter 4

2.  See Ron Haskins and Isabel V. Sawhill, “Work and Marriage: The Way to End Poverty and Welfare” Policy Brief: Welfare Reform and Beyond no. 28 (Brookings, September 2003). The simulation indicates that if every family head had a high school education and earned what high school graduates earned, the poverty rate among families with children would decline by nearly two percentage points.

5.  Donald Shepard and Richard Zeckhauser,”Where Now for Saving Lives?” Law and Contemporary Problems 40, no. 4 (1976): 5–45. See also Matthew D. Adler, “QALYs and Policy Evaluation: A New Perspective,” Yale Journal of Health Policy, Law, and Ethics, vol. 6, no. 1, 2006, p. 1.

7.  See generally Orley C. Ashenfelter, “Measuring the Value of a Statistical Life: Problems and Prospects,” IZA Discussion Paper No. 1911 (Bonn: Institute for the Study of Labor, January 2006).

8.  W. Kip Viscusi and Joseph E. Aldy, “The Value of a Statistical Life: A Critical Review of Market Estimates Throughout the World.Journal of Risk and Uncertainty 27, no. 1 (2003): 5. These same authors compute the value of a life year at various ages, finding a value of $263,000 at age 30. W. Kip Viscusi and Joseph E. Aldy, “Age Variations in Workers’ Value of Statistical Life,” Harvard Olin Discussion Paper 468 (Cambridge, Mass: National Bureau of Economic Research, 2004).

11.  Gardiner Harris, “Panel Unanimously Recommends Cervical Cancer Vaccine for Girls 11 and Up,” New York Times, at A10.  

12.  Allen R. Myerson, “Ideas and Trends; Final Stats: Mantle’s Law Medical Bills,” New York Times, Aug. 20, 1995, at A5. 

13.  Idem.

14.  One prominent surgeon refers to the allure of “those pesky little miracles” in an email from Dr. Randolph Reinhold, Chairman of Surgery, Hospital of Saint Raphael, New Haven, CT, to Peter Schuck, July 11, 2005.

15.  American Medical Association, Code of Ethics, §2.03 Allocation of Limited Medical Resources. Appendix One, infra, contains all excerpts from the code of ethics related to futile care determinations.

16.  The Supreme Court of Canada has held that the government’s health agency may not bar individuals from purchasing private health care in situations when receiving care in the public system would take too long. Chaoulli v. Quebec, 1 S.C.R. 791 (2005).  The European Court of Justice has ruled that the British government must pay the costs of patients who seek treatment elsewhere in the European Union because of undue delay in getting treatment at home. Sarah Lyall, “Britain: Delayed Patients Can Have Operations Abroad,” New York Times, May 17, 2006, p. A8.

17.  See, for example, Stephen Breyer, Breaking the Vicious Circle (Harvard University Press, 1993). Breyer reports a government study of a variety of regulations intended to save lives. The costs (in 1990 dollars) for a premature death avoided ranged from $100,000 (ban on unvented space heaters) to $92 billion (atrazine and alachor drinking water standard). One regulation actually cost 60 times as much as the $92 billion standard, but the estimate seemed out of line. Ibid., pp. 24–27. Breyer’s analysis seeks ways to overcome vast inefficiencies in regulations, by placing such extreme bad bets at the top end of the cost distribution. Since only statistical losses are involved in regulatory policy choices, such reforms are likely to be politically and psychologically easier to adopt than decisions to withhold benefits from the identified bad bets who are our subject.

18.  Lisa A. Prosser and others, “Cost-Effectiveness of Cholesterol-Lowering Therapies according to Selected Patient Characteristics,” Annals of Internal Medicine 132(10) (May 16, 2000), pp. 769-779.

20.  Henry J. Aaron and William B. Schwartz with Melissa Cox, Can We Say No? The Challenge of Rationing Health Care (Brookings, 2005), pp. 36–37 and 42.

22.  Eric Nagourny. “Transplants: For Kidneys, Age Matters Little.New York Times, March 15, 2005, sec. F, p. 6.

23.  James Lubitz, James Beebe, and Colin Baker, “Longevity and Medical Expenditures,” New England Journal of Medicine 332 (April 10, 1995): 999–1003.

24.  All figures are from James D. Lubitz and Gerald F. Riley, “Trends in Medicare Payments in the Last Year of Life,” New England Journal of Medicine 328 (April 15, 1993): 1092–96.

25.  See Daniel Altman, “How to Save Medicare? Die Sooner,” New York Times, February 27, 2005, Business sec., p. 1 (citing Dr. Gail Wilensky, Project HOPE).

29.  See John A. Robertson, “Schiavo and Its (In)Significance,” Public Law Research Paper No. 86 (University of Texas Law School, 2006).

30.  This oft-quoted threshold originated from Lawrence J. Schneiderman and others, “Medical Futility: Its Meaning and Ethical Implications,” Annals of Internal Medicine 112 (1990): 949. They defined quantitative futility as a situation when physicians determine that a particular medical treatment has been useless in the past 100 (presumably similarly situated) cases, through empirical data, information from other physicians, or personal experience.

32.  See, for example, Rurik Löfmark and Tore Nilstun, “Conditions and Consequences of Medical Futility—From Literature Review to a Clinical Model,” Journal of Medical Ethics 28 (2002): 115-119.

33.  Ibid., 115, 117. The authors do acknowledge that these differing decisions maintained within the same article “may reflect the complexity of the situation arising when trying to decide who should decide: the doctor or patient.”  Ibid., 118.

34.  Catherine M. Breen and others, “Conflict Associated with Decisions to Limit Life-Sustaining Treatment in Intensive Care Units,” Journal of General Internal Medicine 16 (2001): 283.

40.  Thomas J. Prendergast and John M. Luce, “Increasing Incidence of Withholding and Withdrawal of Life Support from the Critically Ill,” American Journal of  Respiratory Critical Care Medicine 155 (1997): 15.

41.  Thomas J. Prendergast, Michael T. Classens, and John M. Luce, “A National Survey of End-of-Life Care for Critically Ill Patients,” vol. 158, p. 1165 (1998).

42.  Gina Kolata, “Medicare Says It Will Pay, but Patients Say ‘No Thanks,’” New York Times, March 3, 2006, p. C1.

43.  We thank Samuel Osher, MD, Harvard University Group Health Plan, for this example. We assume that few patients would make their decisions on the basis of the additional information that such a choice would free up the resources for better bets.

44.  See Daniel Altman, “How to Save Medicare? Die Sooner.”  Apparently, there is little research about whether hospice care saves money. Ibid.

46.  Donald Berwick, “As Good as It Should Get: Making Health Care Better in the New Millennium (Cambridge, Mass.: Institute for Healthcare Improvement, 1998).

47.  The most extensive studies have been undertaken by a research group at Dartmouth. They found that higher-spending regions of the country received approximately 60 percent more care, with no gains in outcomes.

48.  See, for example, Ron Winslow, “Care Varies Widely At Top Medical Centers,” Wall Street Journal, May 16, 2006, p. D1.

50.  Gary L. Gaumer and Joanna Stavins, “Medicare Use in the Last Ninety Days of Life,” Health Services Research 26, no. 6 (February 1992): 725–42.

52.  See Alan S. Gerber and Eric M. Patashnik, Promoting the General Welfare: New Perspectives on Government Performance (Brookings, forthcoming), chapter 3; John Carey, “Medical Guesswork,” Business Week, May 29, 2006, p. 72.

53.  See Alex Berenson, “Cancer Drugs Offer Hope, but at Huge Expense,” New York Times, July 12, 2005, p. A1.

60.  See, for example, Gardiner Harris, “Money for Vaccinating Children Is Diverted for Experimental Adult Flu Shots, Officials Say,” New York Times, December 16, 2004, p. A28.

61.  Jacob S. Hacker, “False Positive,” New Republic, August 16 and 23, 2004, pp. 14, 16 (citing research of Julia Lynch). See also Gardiner Harris, “Money for Vaccinating Children Is Diverted for Experimental Adult Flu Shots, Officials Say,” New York Times, December 16, 2004, p. A28.

62.  See, for example, our discussion above of the use of statins to lower cholesterol, which tends not to be given to low-risk groups, even though they receive some positive benefit.  With other drug treatments, there is a failure to avoid bad bets.  There is a choice in drugs given post-heart attack, to reduce future risk, namely streptokinase versus the much more expensive TPA.  TPA offers significant additional benefits to some groups, but virtually none to others.  Nevertheless, it is almost always the drug that is given.   David Cutler, Harvard University, private communication, July 6, 2006.    

65.  Department of Education Press Release, Secretary Spellings Announces New Student Loan Default Rate, Sept. 15, 2005, available at http://www.ed.gov/news/pressreleases/2005/09/09142005.html. Fortunately, default rates have been moving in the right direction. In 2003, apparently the latest year for which figures are available, default rates were only 4.5 percent, down from it’s peak of 22.4 percent of student borrowers in 1990. Jon Marcus, “Debt Up But Defaults Down,” Times Higher Education Supplement, Sept. 30, 2005, no. 1711, p. 13.  Trends in default rates are also available on the Department of Education website.

 67.  Jonathan Kahn, “How a Drug Becomes ‘Ethnic’: Law, Commerce, and the Production of Racial Categories in Medicine,” Yale Journal of Health Policy, Law, & Ethics 4 (2004): 1. See also Economist, “Not a Black and White Question” April 15, 2006, pp. 79–80.

 


                                                                                                                                           
 
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