request, overseeing the development of which is one
autonomy and ability to provide timely responses” to
of his largest responsibilities. I was also encouraged
congressional and other client requests.
because he devoted that day’s blog to his speech
Morton also noted that the National Academies’
at the National Academies. His words backed his
Principles and Practices for a Federal Statistical Agency
actions. To quote from his blog:
lists independence as one of four key principles and
that “authority to control information technology
The president has made it very clear
systems for data processing and analysis” is related
that policy decisions should be driven by
to independence.
evidence—accentuating the role of federal
To date, the only reply has been from Michael
statistics as a resource for policymakers.
Mundaca, the acting assistant secretary for tax poli-
Robust, unbiased data are the first step
cy at the Department of Treasury. Mundaca says in
toward addressing our long-term economic
his letter to Morton that “the Office of Tax Policy is
needs and key policy priorities.
aware of the issues you raise and shares your interest
in insuring [sic] that SOI has the IT resources that it
needs to fulfill its mission while fully complying with
Orszag on Health Care and Education
all applicable laws and guidance. We plan on working
Noting that “big decisions are being made, often
with the IRS to see that IT restructuring intended to
on inadequate information,” Orszag called for bet-
increase security does not compromise SOI’s effective-
ter data to guide policy. He highlighted two “areas
ness or the confidentiality of taxpayer information.”
where more and better data would be useful: health
Representative Carolyn Maloney, who chairs the
care and education.” Again, from his blog:
Joint Economic Committee and is a longtime cham-
pion of federal statistical agencies, also wrote a letter
In health care, bending the curve on cost
to Shulman that stated, “It is imperative that a bright
growth will require more information about
line be maintained between the collection, analysis, and
how we’re spending our health dollars, the
use of data by the SOl for statistical purposes and that
health outcomes we’re producing, and
by the IRS more broadly for critical tax administration
how specific interventions rank against
purposes. Any blurring of that line or merging of func-
alternative treatments. In education,
tions would undermine the ability of SOl to perform its
better longitudinal data on the progress of
mission, and the perception of its objectivity.”
individual students, which can be linked
Shulman replied to Maloney’s letter on May 6,
to specific programs and teachers, will go
saying “protection of taxpayer data is a top prior-
a long way to helping us understand what
ity” for the IRS. He said he has asked the head of
works better—and what doesn’t—and as a
each IRS operating unit to work with the IRS “chief
result, where to target scarce resources to
technology officer on a thoughtful plan to ensure
bolster student achievement.
that we have an integrated approached to securing
taxpayer information” and that this effort is in the
To document his point, Orszag showed a graph
preliminary stages. Last, the letter states, “No one
estimating Medicare and Medicaid’s costs going
is exploring, nor am I interested in pursuing, any
from today’s roughly 4% of GDP to almost 20% by
organization changes to the unique role SOI econ-
2080. Previewing arguments that President Obama
omists, statisticians, and other experts play within
would make in his subsequent push for health care
the division.”
reform, Orszag cited inefficiencies and wide varia-
I have also worked to examine other angles
tion in treatment as part of the problem. One of his
of influence, including meeting with staff for
slides showed a map of the United States revealing
the Joint Committee on Taxation and the Senate
wide variation in per capita Medicare spending and
Finance Committee.
another graph suggesting that quality of care doesn’t
With a new administration comes a fresh look at
correlate with Medicare spending. He cited an exam-
federal statistical agencies, as the new political appoin-
ple of wide disparity in cost of treatment within a
tees consider the role of statistics in each of their agen-
single hospital for the same condition, depending on
cies. Morton has written letters to administration offi-
which department treated the patient.
cials regarding statistical agencies other than SOI, as
Orszag sees tremendous potential for cutting
well. I will report such letters in the Science Policy
federal deficits through better health care spend-
Actions box included in this column and online at
ing. In addition to funds for computerizing health
www.amstat.org/outreach/scipolicy letters.cfm.
records; prevention and wellness interventions; and
sufficient and well-trained doctors, nurses, and other
health professionals, the Obama Administration
30 AMSTAT NEWS JULY 2009
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