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Most of the proposed savings come from reducing overpayments to Medicare Advantage and reducing reimbursement rates to hospitals.
Federal and state politicians insist on reducing reimbursement while at the same time union employees salaries and needed costs keep rising.
On the other hand, of course, insurers could respond to such behavior by cutting doctors out of their networks or reducing reimbursement rates.
With 87% of revenues coming from Medicare, the stock tends to sell off whenever government officials talk about reducing reimbursement rates.
Most of the Medicare savings in the Affordable Care Act come from a combination of reducing vast overpayments to Medicare Advantage plans and reducing reimbursement rates to hospitals.
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The legislation, House Bill 1, would reduce state and federal spending over the next two years by $23 billion by slashing financing for public education, reducing reimbursements for Medicaid, which could shutter nursing homes, and cutting off scholarships for incoming college students.
He told me of a meeting he attended in March of the Washington Psychiatric Society, where a "high official" of the A.P.A. defended keeping the Goldwater Rule in place, on the theory that if psychiatrists spoke out against Trump the government would retaliate by reducing reimbursements to doctors for psychiatric treatment.
Maybe reducing reimbursements does not cut costs!
Bottom line: reducing reimbursements starves the system while the costs of healthcare continue to seek the stratosphere.
No! Reducing reimbursements just makes hospitals go out of business and makes providers leave health care or decide not to go into the field in the first place.
But the program is scheduled to reduce reimbursement by only $21 million in 2009, not enough to make a major difference, Mr. Kuhn said.
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Justyna Jupowicz-Kozak
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