In an opinion piece for the Los Angeles Times, David Lazarus explains that, if we did not rely on private health insurers, our costs for care would be half of what they are and outcomes would be better. At least, that’s the case in every other developed country. But, many members of Congress (who often get their health care from Bethesda Naval, a government hospital system) claim that relying on the government for health care coverage is a bad idea.
Today, we spend $3.5 trillion a year for health care. But, we live shorter lives and more children die prematurely in the US than in other wealthy countries. Another compelling argument against our health care system is the bills we get from hospitals and our health insurers.
One older man who underwent sinus surgery this past fall was billed $77,000 by his hospital, Scripps Mercy Surgery Pavillion, for his three-hour procedure, in addition to $5,000 from his surgeon and anesthesiologist. The hospital’s charge was for technical items, such as the surgical room, equipment and nurses. Because the patient had Medicare, he was told he was responsible for the 20 percent coinsurance, $1,174. Medicare paid just under $6,000.
It’s the definition of lunacy that the hospital charged more than 12 times Medicare’s approved rate. Most do not charge that much more than Medicare. But, most do charge three to four times Medicare’s rate.
Consequently, without Medicare–with private health insurance or without any insurance at all–people get charged astronomical bills. Medical debt is through the roof.
As of the beginning of this year, hospitals must list their prices so people should be able to know them in advance. But, it is asking a lot of people to comparison shop. They go where their doctors are.
Regardless of what others say, Medicare is social insurance, the government pays for care from private providers. If Medicare were socialized medicine, the hospitals and doctors it covers would be on the government payroll, not independent entities. If everyone had Medicare, a better improved Medicare without out-of-pocket costs, everyone would be better off.
Instead, we have non-competitive health care markets. In nine out of ten markets, hospitals have monopoly pricing power. As a result, we do not have fair hospital and doctor prices.
Medicare for all would lead to competition based on value, giving Americans market power, which we are sorely missing. It would not be socialized medicine. For that, we’d need to be able to get care at Bethesda Naval, which members of Congress happily do while expressing deep opposition to it for everyone else.
Here’s more from Just Care:
- Are hospitals posting their prices, as required?
- Hospital rates out of control with private health insurance
- Congresswoman Jayapal introduces Medicare for All bill
- Why haven’t Democrats taken on the hospital industry?
- New law prevents doctors and hospitals from sending patients surprise medical bills
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