Wednesday, August 27, 2014

Medicare - MBA Discussion Question 9-25-13


Written by: Scott Tomiko

Medicare enrolled patients are being seen by less and less Doctors.  Many doctors are not accepting new Medicare patients.  Some attribute this to payment rates not keeping up to the inflation rate and soon reimbursements could be cut by 25%.  An example of payments that doctors receive from Medicare is $68 for a 15 –minute visit. This requires doctors to see at least 30 patients a day to make their bills.  Many doctors equate this to assembly line line medicine rather then being able to actually talk to and help the patient.

Patient privacy is another issue many doctors are concerned with.  Patient records are available to all doctors who see a particular patient.  This means all confident information between a patient and a specific doctor is available to all doctors that the patient visits.

Doctors have 3 different choices when dealing with Medicare.  1st they can be a part of the system billing Medicare directly. 2nd non-participating doctors can file Medicare reimbursements and then they can charge an additional 10% for some services. 3rd doctors can opt out of Medicare, which means they cannot see patients who still participate in the Medicare system.

   How does the level of government control, between a perfect market system and a central planning system, affect the industry or market in the article? A perfect market system lets individuals and private firms make the major decisions about production and consumption, while a central planning system has the government making most of the important economic decisions.  Medicare is a central planed system, the government controls all major decisions of what is covered with patients medical care, and what doctors are allowed to charge for everything they do for the Medicare patient.  Patents are not able to choose what procedures are done and doctors are only able to do producers on patients that the government approves of and then they can only charge certain fees for each service.  Medicare is the exact opposite of a free market system.  The government has added new mandates to the system, which will reduce the amount to money doctors, get paid. 
   How might the industry or market change if the level of government control moved one way or another along the continuum? Since the government controls all aspects of Medicare, the government would have to loosen its controls on the Medicare system. Republicans would like to see Medicare patients to be able to see private doctors; Democrats feel this will undermine the entire system. The government is too involved in the health care system.  Anyone with a job has paid into the Medicare system.  Allow each person the choice to go where they want. Each person should have an account that shows how much he or she has paid into the system and how much benefits that are allowed each year.  This would then allow them to go shopping for a doctor or service.  If I go shopping for food with $100, I can by many items or just one item but I have to stop at $100.

I think the system is so big and so many people have come to depend on it that no one will want to change it toward a free market system.  Politicians will do what they can to keep Medicare in place.  The U.S. has become a welfare country.  The two (Medicare and Social Security)’programs accounted for 37 percent of all federal spending last year, and the Congressional Budget Office estimates that, under current law, their share will grow to 42 percent by 2023”. http://www.nytimes.com/2013/06/01/us/politics/outlook-for-medicare.html?_r=0

As a society how can we continue to support programs that cannot pay for themselves?  Both of these programs are specifically taxed out of each person’s paycheck, yet the government cannot figure out how to make them self-supporting.







More Doctors Steer Clear of Medicare – July 20, 2013 Wall Street Journal

Tuesday, August 26, 2014

The Central Bank 12-2-2013 Discussion for my MBA Class


Responses by Scott Tomiko 12-3-13

Explore the website of a central bank.
    What are the main policy goals and instruments used by the central bank?
China has implemented “a proactive fiscal policy and a prudent monetary policy”.  They have tried to strengthen reform measures to help transform the stable growth pattern prior to 2012 to a more productive, accelerated pattern in 2013. Macroeconomics problems remain unsolved in 2013; this has forced the PBC to continue to reform their market-based interest rate and their RMB exchange rate.
       What is its current monetary policy position?
China will stick with its prudent momentary policy thru the end of this year despite a slow down in the GDP in the second quarter from 7.7% to 7.5%. China is trying to strike a balance between current reforms and maintaining its economic growth. The central bank has been ready to liberalize its deposit rate. This will mean that these rates are subject to a 10% cap. China has injected $11 billion yuan into the banking system this week and their 2013 totals are at $197.8 billion yuan. They injected $1.438 trillion yuan in 2012. In 2012 they reduced each banks reserve ratio, which put another $800 billion yuan into circulation. China has raised the discount rate on the cash it provides to the market. It has set a rate of 4.1% for its seven-day bond reserve repurchase agreement.  This has increase from 3.9%.
    How effective do you think the policy has been in promoting the country’s goals?
Chinas discount rate increase will have a negative affect on business activity, inflation will decline slightly (a positive) and their currency will strengthen (another positive). Easing deposit rates have allowed China to accelerate its economy.  Injecting more money into the economy does provide businesses with money to expand by citizens having more money to spend.
    End your post with a question for your classmates related to how the central bank you have examined compares to other central banks. Based on China’s current policies of increasing economic growth, they are injecting billions of yuan into their economy.  This is similar to the Federal Reserve of the United Sates with its current Bond buying program of $85 billion a month. China’s GDP declined from the second to the third quarter, one more decline and they will be in a recession based on their current stimulus package. Even in China when there is talk of tighten up money supply a panic arises. How will either banking system stop this stimulus policy without have their perspective economies slow drastically or revert back into a recession?



Be sure to list the URL of the central bank.

http://www.pbc.gov.cn/image_public/UserFiles/english/upload/File/中国金融稳定报告2013(英文版).pdf


Saturday, March 29, 2014

Green products

My wife Debbie Tomiko and myself are Marketing Executives now partnered up with makegreengogreen. I help people convert their homes, getting rid of the harmful chemicals that we use to clean everyday.  It is a great feeling to be able help families with alergies and sensitive skin aliments.

www.makegreengogreen.com/scotttomiko