Tag: "Health Care Costs"
The Administration continues to move the goalposts on its so-called “bailout” of insurers which lose money in ObamaCare’s exchanges. Formally, this is labelled “risk corridors”, and describes a process by which the Administration will take money from insurers which profit more than expected in the exchanges, and transfer it to those insurers which lose more money than expected.
Unfortunately, taxpayers are at risk because the revenue coming into the risk corridors is determined by premiums, whereas the payouts are determined by medical claims. If, overall, the insurers charged premium that are too low, the risk corridors will suffer deficits. This blog has covered the risk corridors thoroughly, and we expect that there will be a significant deficit. Our latest entry on the topic questioned the Administration’s assertion that the risk corridors would be budget neutral.
Medicaid is the single largest component of state expenditures, accounting for 23.5 percent of the $1.7 trillion spent by states in 2013.
Largely as a consequence of the ACA, state and local spending for Medicaid is projected to nearly double over the next decade.
The Administration continues to promulgate ineffective regulations that are supposed to help patients understand how much money they owe their hospital. Here is this month’s proposed rule updating the hospital Inpatient Provider Payment Services (IPPS) schedule for 2015:
Hospitals are responsible for establishing their charges and are in the best position to determine the exact manner and method by which to make those charges available to the public. Therefore, we are providing hospitals with the flexibility to determine how they make a list of their standard charges public. Our guidelines…are that hospitals either make public a list of their standard charges (whether that be the charge master itself or in another form of their choice), or their policies for allowing the public to view a list of those charges in response to an inquiry.
It is hard to imagine how this is going induce hospitals to present good-faith charges to patients, whether they are insured or not. A better solution would rely on common law, not federal regulation.
By Shunning the Exchanges, Republican Governors Helped Taxpayers and Helped Make ObamaCare Work Better
A new report, by former Missouri Insurance Commissioner Jay Angoff, shows that states in which governors and/or legislators resisted ObamaCare, and whose Attorneys-General challenged its constitutionality, had the lowest cost-per-enrollee:
States which established their own ObamaCare exchanges cost much more to enroll people. The worst, Hawaii, cost $23,899 per enrollee. The “best” of the state-based exchanges is California’s, which cost $758 per enrollee. For all states with their own exchanges, the average cost was $1,503 per enrollee.
If heavily populated Republican states, like Texas and Florida, had established their own exchanges that cost the same as California’s, the bill to federal taxpayers would have been $15 million higher than it was. If they had set up exchanges that cost the same as the average state-based exchange, the tab would have been $30 million higher.
Health-care providers faced between $74.9 billion to $84.9 billion in care costs for the uninsured and people who struggled to pay their medical bills, according to new estimates published in the journal Health Affairs. Using the lower of the two estimates, Urban Institute researchers calculated that hospitals provided $44.6 billion of the uncompensated care, publicly supported community providers delivered $19.8 billion, and office-based physicians provided about $10.8 billion.
Some of the most notable cuts outlined in in the [Affordable Care Act] are to what’s known as Disproportionate Share Hospital payments under the Medicare and Medicaid programs. These safety-net hospitals are expecting to see a total $22.1 billion cut to Medicare DSH payments between the 2014 and 2019 fiscal years, and the ACA originally called for $17.1 billion in cuts to the Medicaid DSH program through 2020.
As many as 42% of Medicare beneficiaries in 2009 underwent unnecessary medical treatments, costing the federal government as much as $8.5 billion, according to a study published yesterday in JAMA Internal Medicine. The analysis is the first large-scale examination into what Medicare spends on procedures that are widely considered to be unnecessary, such as advanced imaging for lower back pain and placing stents in patients with controlled heart disease. (KHN)