Why don’t government payments for health care cover actual costs?

In 2013 under Medicare, hospitals received payment of 88 cents for every dollar spent caring for Medicare patients. Under Medicaid, hospitals received payment of 90 cents for every dollar spent caring for Medicaid patients. These percentages vary by state for Medicaid. In addition, hospitals provide billions of dollars in uncompensated care.

All this means that private insurers and their customers over pay for the same services.

Let’s think about this.🤔

What would happen to hospitals and the access to health care for Americans if we imposed Medicare level payments on hospitals (and doctors) under a Medicare-for-all scheme? With no private insurance to pick up the losses some major changes would be necessary … and those changes would impact how health care is provided.

What would happen if payments were made to fully cover costs? The supposed savings go poof. 🤑

No major changes to health care in America are possible without major changes in the way Americans receive health care and even then there are no guarantees of major savings.

One comment

  1. Let me get this straight a 10 % to 12 % discount? Big deal I get discounts all the time at many places. Why should medical providers not give a discount like many other services? They over charge for everything. I cannot even get a price on services before I receive them from my healthcare providers. When i asked the last time all the doctor told me was you have good insurance they pay well. My cost for the procedure was $1,600. It was a fix for a bent finger that I had been living with for over 7 years. If I would of known the costs ahead of time I may not of had it done. We need truth in treatment costs or we cannot make an informed choice in our healthcare services we receive. My blood work results have not changed in 23 years, I only see the doctor once per year or less, at 62 I see no need to go to the doctor unless I cannot treat an issue with over the counter meds, diet or exercise. I have noticed when I have lower back pain if I get off the sofa and go for a walk, the back pain goes away.


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