But one of the panelists had an interesting assessment - that if we do not make rational reforms, we are heading for a catastrophic financial failure of the health care system in the next 24 months. However, he did not think that health care reform would pass, and that the health insurance system would move rapidly into the financial collapse scenario. That is to say that reform would come one way or the other, but he figured it was likely to come with chaos, needless financial loss, and various types of suffering.

But what about innovation? It seems the writing is on the wall and that we are headed towards a European system with the highest rates of reimbursement for innovative drugs. The "me too" drugs that have dominated the pharmaceutical industry will be reimbursed at a lower rate. As a result, biotech startups are expected to fare pretty well as big pharma partners up to obtain novel drugs. This seems to be part of the Obama's "secret deal with Big Pharma," and in this regard sounds pretty darn good.

Update II

Kudos to fly (uid 488!) for this link to the NY Times, and a pox on the whingers.

In statements and letters, Anthem and WellPoint have explained what the industry calls a recessionary death spiral: as unemployment and declining wages prompt healthy people to drop their insurance, the remaining risk pool becomes sicker and more expensive to insure, which in turn forces up prices and pushes more people out of the market. A study released this week found that the five largest health insurance companies collectively lost 2.7 million customers last year, including 1.4 million by WellPoint. Yet they reported record profits of $12.2 billion. The death spiral "highlights why we need sustainable health care reform to manage the steadily rising costs of hospitals, drugs and doctors," Anthem, which is based in Los Angeles, said in a statement.

Update

As always, it's worth looking in on the paste eaters at Redstate who always worked up over something.

President Obama has launched an all-out attack on the insurance companies in his new healthcare plan. Unfortunately for Americans, the private insurance industry is the last thing standing between us and socialized medicine — and as a result, socialism.

Well, too bad nobody in the health industry had declared themselves to be the ramparts of liberty, because that would be some pretty cool marketing. They could even hire the same ad agency that does those recruiting ads for the Marines. "We looking for a few good actuaries...." And too bad nobody in the GOP has been making that case at the health care summit. But surely the health insurance industry must be happy to know they have ascended to the sacred status enjoyed by Massey Coal.