Hospitals could sustain 10% cut under Medicare public option proposals: report

From Fierce Healthcare:

If the U.S. were to pursue a Medicare public option proposal, it could “decimate” insurance coverage as it looks today and result in a nearly 10% cut to U.S. hospitals, leaders from two top hospital organizations said in a call with reporters on Tuesday.

More than 36 million people would likely leave private coverage if a new government-run public option were to be rolled out, according to a report released by the American Hospital Association and the Federation of American Hospitals.

The study specifically looked at the potential effects of the Medicare-X Choice Act, a bill introduced in 2017 which would be less expansive than Medicare-for-All proposals introduced by some Democrats last month. The big problem: “Under Medicare X-Choice, the public plan would reimburse providers using Medicare rates, which are significantly less than commercial rates and, for hospitals, fall below the cost of providing care,” the report said.

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