Doctors, specialists, and hospitals have opposed Democrat’s health care proposal as it will result in lower payments.
Doctors and hospitals are opposing Sen. Elizabeth Warren’s Medicare for All proposal after weighing the effect it will have on their income. The Democrat’s Medicare for All plan hopes to reduce health care spending by trillions of dollars. It proposes that physicians should be placed on Medicare rates and that Medicare reimbursement rates for hospitals be fixed at an average of 110 percent.
The United States is known globally for its high healthcare costs. The Medicare for All proposals are likely to negotiate lower prices and cut overhead and this, in turn, will result in significant savings. Single-payer advocates have argued that Sen. Warren’s health care plan which will put an end to private insurance will reduce administrative burdens for hospitals and doctors. This will mean that they will be able to attend to more patients at a lower price.
Reacting to Warren’s proposal, The American Hospital Association argued that hospitals are already receiving far less than the cost of treating Medicare patients. It says that if the cost of treatment is reduced further, the survival of hospitals and access to health care could be threatened.
Last month, professor of psychiatry at Baylor College of Medicine, Dr. Asim Shah, co-wrote an op-ed in the Houston Chronicle and he warned of the dangers of doing away with the existing structures and replacing it with a government-run plan. Dr. Shah who oversees about 90 staff at Houston’s trauma center says that while he is not ideologically opposed to a healthcare plan run by the government. He is concerned that most 2020 Democratic proposals are looking to reduce costs by tying more coverage to Medicare, which already pays providers less than private insurance. “The Medicare reimbursement rates are low and that’s why some are scared,” he said. A RAND analysis shows that private insurers pay on average more than double what Medicare pays for similar treatment in hospitals.