Medicare is more than a government-run health insurance program
for America's elderly.
It's also one of the government's biggest price-controllers,
creating a bureaucracy that hurts both doctors and patients,
Heritage Foundation health-care expert Robert Moffit says.
Medicare sets prices for each one of the more than 7,000
procedures that are allowed by doctors in the program, Moffit said
in a Sept. 25 interview with Denver's Rocky Mountain News. It
determines the price for medical technology, medical devices,
in-patient hospital prescription drugs and skilled nursing
facilities. And, as people who lived in socialist or communist
countries can tell you, price controls don't reduce the price of
these services.
"With mathematical certainty they will reduce the quality and the
quantity of services," Moffit told the News. "More and more
physicians are not taking new Medicare patients. Why? First,
because the Medicare reimbursement in many cases does not even
cover their costs. Second, they have to deal with the Medicare
paperwork. Doctors spend an awful lot of time complying with
Medicare rules and paperwork."
This is a point rarely made in Washington as lawmakers attempt to
add prescription drugs as an entitlement in Medicare. It should be
heard more often as 77 million baby boomers prepare to retire,
starting in 2011. And it should be acted on immediately.
For more information or to receive an e-mail version of
"Medicare Maladies," contact [email protected] or call
Heritage Media Services at (202) 675-1761.
Medicare Malady #56: Medicare, the Ineffective Price Controller
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