Here’s proof that Medicare for All is doomed
There’s a high-profile debate over health care playing out in the presidential race, and a lower-profile one taking place in
Several Democratic presidential candidates are telling us that they are going to provide health care that is free at the point of service to all comers. In little-noticed congressional mark-ups, members of both parties are demonstrating why these promises will not be met.
The legislation under consideration is aimed at so-called surprise medical bills - charges a patient assumes were covered by insurance but turn out not to have been. My family got one last year: The hospital where my wife delivered our son was in our insurer’s network, but an anesthesiologist outside the network assisted. The bill had four digits.
Surprise bills seem to be something of a business model for some companies. A 2017 study showed how bills rose when
Policy experts from across the political spectrum have devised ways to prevent this sticker shock.
In incidents where the surprise bill is the result of an emergency involving treatment by an out-of-network hospital (or transportation by an out-of-network ambulance), their solution would be to cap payments at 50% above the level that in-network providers get paid on average. In both cases, prices would be determined by a negotiation among parties that are informed and not in the middle of a medical emergency.
Sen.
It is a generous approach that analysts with the USC-Brookings Schaeffer Initiative for Health Policy conclude “would likely result in large revenue increases for emergency and ancillary services, paid for by commercially-insured patients and taxpayers.”
It would therefore mean higher premiums and federal deficits, while Alexander’s alternative has been estimated to reduce both. Ruiz has 52 co-sponsors who range from liberal
Turn from this dispute, for a moment, to the Medicare for All proposal (which has some of the same co-sponsors as the Ruiz bill). It envisions sharp cuts in payments to providers - as high as 40%. Those cuts enable advocates to say they will cover the uninsured and provide added coverage to the insured while reducing national health spending.
Is this at all likely? The Alexander bill would try to rein in billing by one subset of providers in cases where the bills are especially unpopular. But the
There is, in short, very little appetite for cutting payments to providers. If medical-provider lobbies can force
— Ponnuru is a Bloomberg Opinion columnist. He is a senior editor at
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