Robin Hanson Discusses the Karnataka Health Insurance Experiment
overcomingbias.com
overcomingbias.com
This study is, to our knowledge, the largest experimental evaluation of health insurance in an emerging economy and the first to examine spillover effects. Nevertheless, it has limitations. First, the study was designed to be powered to detect a change in the hospitalization rate, not necessarily changes in health outcomes. Recent research has shown that samples sized in the millions may be required to find effects on rare outcomes, even with insurance that covers not just hospital care, as in this study, but also outpatient care and drugs (Goldin, Lurie et al. 2019). Second, the study examines a plan without coverage for non-surgical outpatient care and prescription drugs. This limits applicability to more comprehensive insurance schemes. Third, while the study helps predict the effect of expanding eligibility under India’s new PMJAY insurance, it does not inform the effects of that plan’s expansion of coverage to non-acute hospital treatments.
So health insurance may be useful, but health insurance for hospital treatment isn't. I don't think that conclusion is much weaker.
What you quote is a mischaracterization by Hanson. From the study (from the GP comment):
> the study was designed to be powered to detect a change in the hospitalization rate, not necessarily changes in health outcomes.
The interesting questions are: which causes a better gross outcome (what Hanson discusses) and, if outcomes are the same which costs less.
If insurance means there is more primary care and that causes less hospitalization then you clearly save money and have a better QoL.
Insurance also handles a different class of cases, e.g. you are hit by a car. These are outlier cases (for which insurance makes the most sense and implies no moral hazard). This is ignored by Hanson who considers only baseline chronic conditions like cholesterol levels.
The study could imply that insurance coverage could be modified (covering less routine care), though more work would be needed. I’m dubious, but that could be the right thing.
It mentions only one of the three points.
> So health insurance may be useful, but health insurance for hospital treatment isn't.
No, that’s not justified by the study, because as the study says, it only was designed with the power to detect changes in hospitalization rates over the term of the study. not health outcomes, which would require a much larger study. The study is useful if you are trying to use pre-policy hospitalization rates to predict the usage under (and therefore cost of) a public hospitalization-only insurance policy over the first several years, but it is very much not useful in evaluating whether that or any other insurance policy is useful.
- Costa Rica $14k GDP per capita (2018) $1.1k health expenditure (PPP 2011)
has a higher life-expectancy and healthy life-expectancy than
- Saudi Arabia $50k GDP per capita (2018) $2.5k health expenditure (PPP 2011)
Overall, there is a weak relationship between wealth and health expenditure vs. outcomes beyond $30k GDP/capita and $1.5k expenditure.
Many Europeans and North-Americans would expect significantly worse health outcomes using the system of Costa-Rica, Barbados, Uruguay or Turkey, but the data shows similar aggregate outcomes.
Of course there are more complexities in understanding the individual data-points.
https://ourworldindata.org/grapher/life-expectancy-vs-gdp-pe...
https://ourworldindata.org/grapher/healthy-life-expectancy-v...
The point is other countries e.g. France, Switzerland, Canada, UK, there are also not significant differences vs. countries with lower GDP per capita.
I'm not saying this proves a relationship but it's a useful indicative signal, and the randomised studies cited by Hanson, combined with the health outcomes of American Amish all together make more more sceptical of the benefits of health expenditure.
I'm not certain though and would love more info. If anyone has any evidence pointing in the opposite direction then would be really interested to see it.
Many people do not engage in any physical exercise at all, overeating is common, consumption of sweetened beverages very high, illicit drugs are way more common than they theoretically should be.
Medical care isn't magic and cannot completely neutralize accumulated consequences of such bad lifestyle decisions.
To me it's surprising there aren't at more high spending countries with significantly better outcomes measured by these metrics.
Because healthcare is labor intensive, you probably want to at least adjust per capita spending by PPP, and it might even be better to look at per-GDP spending (really, relative healthcare costs is the goal, but you can't easily get that directly.) So, Saudi Arabia has worse outcome but plausibly is lower on the relevant spending measure, as well, compared to Costa Rica. Otherwise, the effect of healthcare consumption is being masked by differences in the cost of healthcare.
(Of course, even looking at per GDP spending, and compared to other advanced nations so that there are fewer confounding factors, the US proves it's possible to spend a lot extra with no result, if you design the system badly enough.)
Access to healthcare might be an answer. (Probably not the only answer though, but likely other answers will be aligned similarly)
> Conclusions. The high prevalence of obesity in the United States contributes substantially to its poor international ranking in longevity.
I wonder how much of this is explained by the obesity epidemic. And this isn't something that is solved by better access to healthcare - the best treatment that modern medicine has to offer (diet and exercise) is kind of obvious and accessible to everyone. One can argue that access to healthy and cheap nutrition options matters, but again, this is not something that one would classify as "healthcare".
And I think the jury is out on “fresh produce” being the key differentiator. It’s hard to find real science that backs that theory up.
I don't know if redlining is the only reason for this gap, or even one of the most important, but it's obviously a part of the story. If you're going to make generalizations about entire cultures this way, I think the onus is on you to engage with the history, even if only to say why you think it's not playing a part here.
Redlining is a huge big deal; despite ending in the early 1970s, it literally defines the neighborhood boundaries across much of Chicagoland in 2021. And grocery stores are scarce in redlined neighborhoods, but not as much in working class Mexican neighborhoods.
Or look at a place like south-suburban Olympia Fields, which is majority Black but wasn't redlined (presumably, it's where a lot of upwardly-mobile families locked into Lawndale and Englewood fled to). Plenty of grocery options.
Do you really think redlining has nothing at all to do with this? That seems like an extraordinary claim.
Why does "de facto redlining obviously lives on"? How do you know that the areas with less investment in the west side of Chicago suffer race-based discrimination in investment (i.e. "redlining") as opposed to data-based, rational investment decisions?
You can raise the standard of living in the redlined neighborhoods, and that does happen at the margins, but it happens slowly and only when economic conditions across the city are good.
So no, it's not the case that Whole Foods or Pete's is just going to spontaneously site a new store in K-town. They're not avoiding that area because they're racist, but they are avoiding it because of racism.
Regardless, it is not "de facto" redlining, as redlining is race-based discrimination in investment, and that is not what is happening now. If you are criticizing rational, data-based, non-discriminatory investment, then you should not caracterize it as redlining, as the defining characteristic of redlining (i.e. race-based discrimination) is lacking in the current situation.
> Access to healthcare might be an answer. (Probably not the only answer though, but likely other answers will be aligned similarly)
I look forward to hearing how Mexican Americans enjoy better access to healthcare than non-Hispanic white Americans.
Low American life expectancy seems to result from other factors (obesity, high homicide rates, etc).
Otherwise wevcan cherry pick pairs of data points to match up with whatever belief one likes to hold.
https://en.wikipedia.org/wiki/Survival_analysis
Even survival analysis is far from perfect because its correlational, not causal. There are other techniques such as front door criteria etc. to figure these out.
This is contrary to what I recall reading previously, so I looked up some sources. One study says: “When people come to the United States, they are positively selected, so people coming here are usually younger and healthier,” Baluran said. “What researchers found is that the longer people [immigrants] stay in the U.S., their health begins to deteriorate; by the time [they] reach the second and third generation, the health advantage that immigrants have almost disappeared.”
https://asamnews.com/2021/12/23/immigrants-asians-live-healt...
For example, the data distortion caused by having younger asians in the United states is an example of Simpson's paradox. These can be eliminated using survival analysis
My aim isn't to cherry pick but simply to describe the distribution of outcomes we currently observe.
Amish people tend to be healthier in their old age than an average American [0], ethough their total life expectancy is lower (but there is a subset that lives much longer - on average to 85 - and they are subject to genetic studies [1]).
Of course, only 4 per cent of Amish are obese, even though their typical diet is not exactly vegetarian (meat, dairy products etc.)
[0] https://time.com/5159857/amish-people-stay-healthy-in-old-ag...
[1] https://news.feinberg.northwestern.edu/2017/11/amish-longevi...
Mormons also seem to be healthier than average Americans [2]. Of course, the religious ban on tobacco and alcohol might help with that.
[2] https://www.latimes.com/archives/la-xpm-1997-04-26-me-52680-...
First off, it’s not necessarily calculated the same when it comes to stillbirths versus infant deaths, which drastically skew numbers.
Second, other factors unrelated or weakly correlated to healthcare systems can impact life expectancy (alcohol use, diet, traffic accidents, suicide).
Third, racial differences in longevity.
> Third, racial differences in longevity.
You may want to investigate the healthcare reasons for these.
No, they just look at deaths. If someone leaves the US, their life expectancy isn’t counted.
Random citation: https://pubmed.ncbi.nlm.nih.gov/12586217/
Do you have any study about what you're saying that controls for height?
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edit: for example...
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1071721/
Table 1
Age-standardized death rates from all causes, coronary
heart disease(CHD), and stroke per 100,000 population
(males) for 6 ethnic groups in California
Ethnic groups* Height, cm (in) Age-standardized death rates/100,000
All cause CHD Stroke
African American 178 (70) 1,800 316 102
White 178 (70) 1,243 302 60
Hispanic 172 (68) 856 175 49
Asian Indian† 170 (67) 668 258 33
Chinese 169 (66) 773 155 62
Japanese 169 (66) 693 146 52
*In order of decreasing height.
†Based on height data for upper socioeconomic status in India.But in many countries insurance seems to work like a subscription service that covers everything including things that have a 100% probability of happening (like common cold).
Quite naturally, the people who are already paying for it would want to go to the doctor's office and the people who would have to pay for it out of pocket, would not.
This should not then be measured by health outcomes, but economic!
It's quite plausible that health outcomes would be similar in aggregate. If you need urgent expensive surgery that takes your home deposit, you'll still pay it and live if you have no other option.
I'm not sure if this answers your question - but in general I don't believe health care should just be about preventing death.
I think doctors get a lot of credit for reversion to the mean.
Vaccines are great, but we generally dont count them into things like this. Painkillers are great for pain, but generally not required. As are splints, physical rehab, stitches and plastic surgery to reduce scarring, but none of which actually improve health in a way measured by studies like this. Dentalcare is great, and the most common form of surgery people truly need, but again, not in studies like this because they are still a part of the blacksmithsguild instead of healthcare for obvious reasons. Antibiotics are great, but its damned rare you actually need them, and a lost week of work doesn't show up in studies like this, and contrary to common opinion, almost all infections go away with soap, rest, and careful cleaning. Breaking a bone and not getting it professionally set is risky, but is more likely to result in permanent pain and minor damage, but it wont kill you, or force you out of work long time. Antihistamines are great, but are available without prescription in most places,
With rare exceptions medicine just isn't good enough to actually help, not in a way that measurably improves lifespan. But what it does do is give you something to do about your suffering, and trusting this help exists helps, as does having some rituals to follow when temporarily suffering, massively reduces stress in a way that is worth it for society.
I'm glad that even in our shitty underfunded universal healthcare when I had a respiratory infection which did not go away after 1 week of nothing + 1-2 weeks of the typical broad spectrum antibiotics my primary care doctor made an appointment for me for basically immediately at the nearby respiratory care department, and there they made an Xray then prescribed an antibiotic that worked.
Sure maybe it would have gone away by then without all this intervention :)
> With rare exceptions medicine just isn't good enough to actually help, not in a way that measurably improves lifespan.
Yep. Unfortunately we are not there yet.
Except the usual success stories of insulin, psychiatric meds, etc.
Insulin might show up, though its prevalence is what, <2% ? And most diabetics do survive without, they just have to be very careful about what and when they eat, and a bit lucky. Psychiatric meds probably dont count, as its often not a part of healthcare, for similarly sane reasons as dentistry. Even if it does, it pretty much has to prevent suicide, or it will count as zero, as neither preventing forced hospitalization, nor homelessness will count as improved health.
That said, I'm not sure I understand what you wrote about psych meds ("not a part of healthcare for [...] sane reasons [...]"). To me it makes the most sense to have psych meds socially paid, to ... you know keep people sane, keep them in the workforce instead of waiting for their problem to grow so big that now they need to be put into the psych ward (or court mandated rehab).
Difficult to be sure, but not impossible. The problem lies more in the ability of the analyst and the limited, highly abstracted(compressed), often anonymized(lossy) data used. I think the kind of AI we need is already here, and we are slowly but surely transitioning into a true information society. A futuristic idea is that people will all wear sensors which provide a bunch of medical statistics which are then used by semi automated healthcare, but I dont think thats the way it will come to pass, or at least not the entire story. Why wear a device measuring your pulse, when a webcam can do the same while being used for other things, or just not turned off. Your pupillary response speed is another useful metric that a high res webcam can measure. To my knowledge the two aren't used to measure ad responsiveness or engagement to unaware users yet, but they will. This kind of non-abstracted, non-anonymized data already allows some companies to predict health, especially mental health, very well, and that's by accident.
Oh I mean the same reason that dentists are considered blacksmiths rather than doctors, people are just dumb sometimes.
I may have sounded a bit pessimistic about healthcare, but I am more disappointed than pessimistic. I think medicine can and should be improving much faster. I think part of the reason it isn't, is because the public is missinformed about the medical outcomes. And if they knew, far more funding would become available. But faith in doctors ability, has been and, may still be more important than treatment. By this I dont mean mean placebo, I mean it would scare people in general, and that good empathic doctors would burn out fast without an optimistic view of their outcomes. This was even a stronger factor in the past, and as a result this idea is strong, and prevents more ambitious programs.
In Nordic countries you get the same or better healthcare with less exams and medicines than you get in the US because doctors prescribe treatments and medicine only when necessary.