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by jefe_
2503 days ago
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Private Insurance pays healthcare providers higher rates than Medicare. Private Insurance rates serve as a subsidy for healthcare providers, allowing them to fund advanced services & facilities while also accepting the lower Medicare rates. I don't understand how removing this Private Insurance, and then moving everything to Medicare rates, wouldn't instantly reduce the amount of money flowing into the healthcare sector and cause massive slowdowns in all areas, from research, to quality of facilities, to provider pay (nurses, doctors, phlebotomist, hospital janitors), to real estate, and most other sectors of the economy. It would be great if industry rates were lowered, but many aspects of the economy are relying on rates as they exist presently. It seems the more optimal route would be to slow the increase of rates, but this seems to be at odds with the process of untangling Private Insurance and implementing a new Medicare for All System. So my question is, how does Medicare for All cut costs without collapsing the healthcare sector? |
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Administrative and collections costs, which are a large part healthcare industry already (probably more people work in billing than in actually doing the healthcare work). Our current system is a huge mess, mainly related to all the complexity of our insurance system, and just by getting rid of that complexity huge savings can easily be had (though at the expense of a lot of administrative healthcare jobs).
There is a good reason why the USA pays far more than most countries for healthcare received.