University of Maryland Economics Professor Peter Cramton has just released an outstanding video on the Center for Medicare and Medicaid Services (CMS) plan to institute a failed medical bidding program. Dr. Cramton explains how the program, originally intended to reduce spending, will actually lead to higher costs for patients and worse medical outcomes. Nearly one year ago, he sent a letter to the CMS signed by 167 auction experts, but it was ignored by the CMS. Last month, he send another letter to President Obama signed by 244 experts, including 4 nobel prize winner, asking for action.
The institute has written a ConsumerGram and a study that are constistent with Dr. Cramton’s findings. As he points out in his video, fixing the flawed CMS medical bidding program would be simple. See the video here.