Comment by Don McCanne
Based on current media reports, it seems as if the nation has just discovered that hospital prices are very high, and for that reason, we will not be able to enact a single-payer Medicare for All system because hospitals will not be able to survive on the lower rates that Medicare pays compared to private insurers. But there is a fundamental problem with this deceptive framing.
First is that there is a tremendous amount of administrative waste in our hospitals, much of which is recoverable by switching to a well designed single payer system. Second, although the reform proposal is labeled "Medicare for All," it will not involve simply changing to current Medicare payment rates. Third, operating costs will be covered by global budgets, much as we cover fire departments. Fourth, facilities and major equipment acquisitions will be funded through separate capital budgets with local need determined through regional planning.
Right now the two major hospital associations are partnering with other members of the medical-industrial complex to publicize the fact that hospitals will have to shut down if we enact and implement a single-payer Medicare for All program. Not true! You should be prepared with your response when this comes up:
"Single Payer Medicare for All not only recovers a tremendous amount of administrative waste, but it also uses regional planning, global hospital budgets - like fire departments have - and separate budgeting of capital improvements to ensure that we will always have adequate capacity in our hospital system."
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