“Unless hospitals are committing fraud in their reporting to Medicare, their rates cover their costs and profit. To then complain that getting paid more than double that is a “hardship” is laughable. I spent years inside hospitals finances as a consultant. With very few exceptions, they’re rolling in the dough while being incredibly inefficient. It’s remarkable how they’ve managed to perpetuate the narrative of “losing” money on Medicare. Have to hand it to their PR/marketing departments & lobbying arms for pulling that off. The consequences couldn’t be more devastating for the middle class.” – Dave Chase
Don’t Blame Medicare for Rising Medical Bills, Blame Monopolies | Washington Monthly
For decades, hospitals have insisted that they charge the privately insured more to offset losses from Medicare patients. A health care regulator blows the whistle on that myth.
by Thom Walsh June 19, 2023
The power of the myth, promoted by monopolistic hospitals, other health care providers, and private insurers continues to pervert the thinking when it comes to health care finance. It’s time to unpack that myth and show how it obscures what’s really driving up health care prices………….
THE MYTH
According to groups like the American Hospital Association, hospitals and doctors charge so much more to treat patients covered by private insurance because they lose money treating Medicare and Medicaid patients and need to make up the difference.
THE TRUTH
Medicare pays providers adequately and is fiscally sustainable with only modest tax increases. The big problem is with commercial health care plans, and it’s brought to you by too much unregulated, monopoly pricing power
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DAVE CHASE QUOTES ON HEALTH CARE:
“Healthcare is the only expense line item in which all employees receive an unlimited budget…and also no training in how to spend it. That’s why they sign up for $2500 procedures when a $75 solution would do the trick.” – Dave Chase
“Those trying the preserve the wildly under-performing and bankruptcy-inducing status quo healthcare system will do whatever it takes to try to thwart progress” – Dave Chase
