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Unaffordable Unaffordable American Healthcare from Johnson to Trump Jonathan Engel The University of Wisconsin Press The University of Wisconsin Press 1930 Monroe Street, 3rd Floor Madison, Wisconsin 53711-2059 uwpress.wisc.edu Henrietta Street, Covent Garden London WC2E 8LU, United Kingdom eurospanbookstore.com Copyright © 2018 The Board of Regents of the University of Wisconsin System All rights reserved Except in the case of brief quotations embedded in critical articles and reviews, no part of this publication may be reproduced, stored in a retrieval system, transmitted in any format or by any means— digital, electronic, mechanical, photocopying, recording, or otherwise— or conveyed via the Internet or a website without written permission of the University of Wisconsin Press Rights inquiries should be directed to rights@uwpress.wisc.edu Printed in the United States of America This book may be available in a digital edition Library of Congress Cataloging-in-Publication Data Names: Engel, Jonathan, author Title: Unaffordable: American healthcare from Johnson to Trump / Jonathan Engel Description: Madison, Wisconsin: The University of Wisconsin Press, [2018] | Includes bibliographical references and index Identifiers: LCCN 2017015526 | ISBN 9780299314101 (cloth: alk paper) Subjects: LCSH: Medical policy—United States—History—20th century | Medical policy—United States—History—21st century | Medical care—United States—History—20th century | Medical care—United States—History—21st century Classification: LCC RA395.A3 E546 2018 | DDC 368.38/200973—dc23 LC record available at https://lccn.loc.gov/2017015526 aided with a grant from Figure Foundation in search of the increment of healing For Andrew and Samuel ‫ִה ֵ ּנה ַמה ּטֹוב ּוַמה ָנִעים ֶשֶבת ַאִחים ַגם ָיַחד‬ How good and pleasant it is for brothers to dwell together Psalm 133:1 Contents Timeline of Major Federal Legislation Introduction A System Run Amok Medical Free Markets Reining in the Excess The Lure of Profits Efforts to Rationalize 6 HillaryCare Managing Care Quantity and Quality Ethical Wrangling 10 Medicare and Medicaid: Evolving Government Programs 11 (Un)Affordable Care 12 Afterword ix 10 33 53 68 81 102 124 145 154 169 189 215 225 227 271 Acknowledgments Notes Index vii Timeline of Major Federal Legislation Affecting Healthcare Delivery 1964–66 1966 1972 1972 1973 1973 1974 1978 1978 1983 1985 Congress creates Model Cities and the Office of Economic Opportunity, leading to funding of Neighborhood Health Centers Medicare and Medicaid launched National Advisory Committee on Health, Science, and Society created for considering ethical parameters of care Beginning of Professional Standards Review Organizations to monitor quality of physicians and hospital services Health Professions Education Act passed to augment medical education budgets HMO Act passed to direct grants and start-up loans to HMOs Creation of Health Systems Agencies through the Health Planning Act Adoption of DRG payment scheme by New Jersey Medicaid Consumer Choice Health Plan proposed by Alain Enthoven Medicare adopts the DRG payment scheme Medicare offers risk contracting for all beneficiaries to enroll in HMOs ix .. .Unaffordable Unaffordable American Healthcare from Johnson to Trump Jonathan Engel The University of Wisconsin... edition Library of Congress Cataloging-in-Publication Data Names: Engel, Jonathan, author Title: Unaffordable: American healthcare from Johnson to Trump / Jonathan Engel Description: Madison, Wisconsin:... but removes mandate for Medicaid expansion Universal mandate begins under the terms of the ACA Unaffordable Introduction A 1971 editorial in the New Republic, the small but highly influential

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