Ratickle
Founding Member / Super Moderator
So if the fixed cost is 30% of current top price, set that for everyone. And let the government negotiate their rates on pharma, etc.
Chart 8 compares physician payment levels.
Chart 8 2007
Physician Payment Levels
RelativePayment Level
Medicare89% Medicaid60% Commercial114% Total100%
Chart 8 shows that Medicare payment rates are approximately 89% of the overall average rate for these three payer types. Medicaid rates are approximately 60% of the overall average, and commercial rates are approximately 114% of the average. For the same service, then, Medicare would pay 11% less than average, Medicaid would pay 40% less than average, and commercial payers would pay 14% more than average. The cost shift is estimated as the difference between each payer’s actual payment level and the average.
This is why what you propose will not currently work. Medicaid payments would have to increase by 40% and Medicare payments would have to increase by 11% to break even. Medicare and Medicaid already only pay 50% of actual costs, and are in the red for the past two years......
The government does things with a hidden agenda. They do not negotiate price, they set prices and mandates. Get them completely out, completely.... And you'll see prices drop just like air travel and trucking......