Told You So
Apr 22nd, 2010 by David Anderson
Obama Care will raise costs, harm availability to seniors, and put 15% of hospitals in the red.
A report by economic experts at the Health and Human Services Department said the health care remake will achieve Obama’s aim of expanding health insurance — adding 34 million Americans to the coverage rolls.
But the analysis also found that the law falls short of the president’s twin goal of controlling runaway costs, raising projected spending by about 1 percent over 10 years. That increase could get bigger, however, since the report also warned that Medicare cuts in the law may be unrealistic and unsustainable, forcing lawmakers to roll them back.
The mixed verdict for Obama’s signature issue is the first comprehensive look by neutral experts.
In particular, the warnings about Medicare could become a major political liability for Democratic lawmakers in the midterm elections. The report projected that Medicare cuts could drive about 15 percent of hospitals and other institutional providers into the red, “possibly jeopardizing access” to care for seniors.
The report from Medicare’s Office of the Actuary carried a disclaimer saying it does not represent the official position of the Obama administration. White House officials have repeatedly complained that such analyses have been too pessimistic and lowball the law’s potential to achieve savings.
The cuts are trimming the fat in payments to private providers in the Medicare Advantage program. Benefits to traditional Medicare are increased.
The report projected that Medicare cuts could drive about 15 percent of hospitals and other institutional providers into the red
Any time you cut costs some marginal players will drop out. This is what it looks like when efficiencies begin to take hold. HCR does not guarantee a living to every fat cat for-profit hospital executive.
Other institutions with more realistic business models will pick up the slack. Benefits for traditional Medicare are increased. All hospitals will benefit from the flood of newly-insured non-Medicare customers. Community health care centers will expand.
How far off is that comment. With due respect, many of the hospitals affected would be non-profits in underserved communities. The traditional medicare would be cut by 20% or more when it comes to payments for procedures. Some will actually be reimbursed at below cost. This will mean most hospitials will cost shift which will cost insurance rates to rise. Those in communities with a lot of seniors or who serve a poorer population who can’t do that will be in trouble.
A hospital can’t just move. You would be the first to complain about one that left thousands of seniors and working poor without access to a nearby hospital as greedy. Yet when the government cheats them, you say they should just design a business model based more on profit.
The traditional medicare would be cut by 20% or more when it comes to payments for procedures.
Link please. All the fact-check sites disagree with you here.
many of the hospitals affected would be non-profits in underserved communities
Underserved communities do not tend to have a lot of Medicare Advantage customers, which is where the cuts are focused. Actually, there aren’t even any cuts, just restraint in growth of increase. And hospitals in underserved communities will be flush with newly insured customers. If any cost-shifting is happening, the margins will suddenly get a lot better.
Make up your mind guys, does entitlement spending need to be cut or not?
Yet when the government cheats them, you say they should just design a business model based more on profit.
The “cheating” is built into the Medicare Advantage model, which takes funds that should be used for delivering health care and instead delivers those funds to private insurers and pharma companies.
And yes, a hospital that can’t figure out how to make money in the new reality will find most of its services replaced by expanded services at a community health center, which has a mission and a vision more suited to the real world.
I believe David is referring to the 21% medical professional payment cut, aka the “doc fix.”
Even before Obama hospitals were getting hammered by doctors who began performing profitable procedures in their own offices or in subsidiary businesses. Physicians are now treating the well-insured patients themselves, and sending only the underinsured to hospitals. The kinds of high-risk procedures that are now done in under-equipped practices is a bit frightening.
Nonetheless, physicians have discovered a way to lower the cost of treating patients. Now it is time to return that lower cost to to the patients by trimming reimbursements for procedures where it makes sense.
How much does it cost for us to have a system where anybody too cheap to buy insurance, can go to the hospital rack up a $100,000 tab after a car crash, then expect the rest of us to pay them? I flinched when Mitt Romney called these folks “free riders” who expect the rest of us to pay their insurance for them. Now I get it. So here we are, trying to do something about it, what do we get from loyal patriot American conservatives? Nothing but a bunch of s and complaints about why reform is bad. It’s all sport for them. Nothing to do with building America. What we are saying is everybody kicks in. No free riders. That’s not conservative anymore?
According to Forbes, nine of the top ten highest paying jobs in America are health care. CEO’s rank #10 after surgeons, anesthesia, general physicians. Hard to imagine much financial hardship in America’s most lucrative industry.
Trouble is too many people who say they want to cut government spending, cut waste and fraud, want entitlements under control – the problem is every time we try to roll something back these same people go ballistic. WTF? Is it more fun to be opposite on everything than to help solve problems?
Fox News David..really?
Okay then…NEXT!!
…Oh here is something… I now see where you get your dark apololypic good v. evil, bed wetting nightmares from:
At least David provides a source for his info, Trust Fund. Yours are about as believable as Obama being a Tea Partier.
To The Rest of You,
Don’t worry. I’m really flattered by Hube’s attention. (Who would not be flattered by attention from someone with such dashing good looks?) it does not bother me in the least that he is following me around the internets saying that I have a trust fund.
My inner Republican tells me that wealth is equal to goodness. Hube’s constant reassurance that I am good is comforting to me.
Carry on patriots!
I think it is funny how misinformed you are, but the Medicaid advantage was only a small portion of the alleged savings and most of that disappeared in the deals with FL Dems. The vast majority of the savings came from slashing provider fees. There are bills to restore about half of that which would change the figures about 250B. The doctor fix portion was a deal to keep the AMA from going ballistic. It has yet to pass, but it will. The question is will they piece meal it annually or do it honestly at once. It still doesn’t help the hospitals. They don’t have an AMA.
The government can’t run jack…that’s why we are facing a $12-Trillion deficit. Any family, any business, any corporation doing business like the federal government would be immediately bankrupt. Of course, the feds just print more money. They pay-off their ‘GM debt’ with bailout money (read; taxpayer money) and brag about it. Anybody that puts their faith in government healthcare is a certified idiot (read; Democrat).
We have a President who has never made any kind of productive contribution to the economy in his life. He has never owned a business, never had to make a payroll, never produced a product or service; he has always been a guest lecturer, professional pandhandler and street ajitator-
what a perfect resume for making major economic decisions.
Luckily, the American people are waking-up; this will be manifest in the ’10 Congressional elections.,
Guess what? Government is not a business. Business does not have to fight in Iraq or maintain a Navy. Business does not have to make sure they’re promoting the general welfare, insuring the common defense, providing for domestic tranquility. Business has no obligation to feed the hungry or worry about unemployment. If government was a business they would foreclose on your house so you pay your share for the new F-35 fighter jet fleet we are building.
Anybody that puts their faith in government healthcare is a certified idiot?
Ever been on Medicare? It’s the greatest thing since sliced bread. Try the military TriCare system. The vets love it. And don’t forget all the Federal Employees including Congress. Hear them wanting to get shoved into the crappy private on your own system?
it does not bother me in the least that he is following me around the internets saying that I have a trust fund.
Just remember who started the trend, Trust Fund. (The Internet stalking, not the trust fund bit, that is.) See if your feeble mental capacity can actually remember. If not, I’m sure you have the cash for a brain transplant.
Anybody that puts their faith in government healthcare is a certified idiot?
Ever been on Medicare? It’s the greatest thing since sliced bread.
And Medicare turns-down more tests and proceedures than those big, bad insurance companies.
If you want government insurance, get it- leave the rest of us alone; we don’t want your government-run crap.
Rick FYI: Where did you get the idea Medicare has more denials? Seniors love Medicare. It has a much higher consumer satisfaction score than private insurance. It’s not crap at all. Our military depends on it. John McCain has been on it since the day he was born. I never heard of one senior ever cancelling Medicare so they could go back to what they had. Don’t be so negative.
Oh, I forgot…it’s also bankrupt.
Medicare denials are usually because the procedure is covered by some other insurance.