Skip to main content
Sister Publication Links
  • ESG: THE IMPLEMENTATION IMPERATIVE
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Digital Health
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Transformation
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Unwell in America
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Government
May 22, 2019 02:33 PM

House committee dodges Medicare for All's fiscal details

Susannah Luthi
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    AP

    A U.S. single-payer system could redistribute doctor and hospital pay, congressional budget officials told a U.S. House of Representatives panel on Wednesday.

    But ultimately a House Budget Committee hearing painted only a vague picture of what the hospital world would look like if the entire healthcare system were overhauled.

    Some projections from Congressional Budget Office officials were promising for hospitals that struggle now. For example, rural hospitals that treat a high share of uninsured, Medicaid and Medicare patients could get a boost, according to CBO's Jessica Banthin.

    Also, doctors don't necessarily need to face a major rate slash, CBO Deputy Director Mark Hadley said. The government could simply lower doctors' pay by the amount saved through fewer administrative costs.

    When Rep. Jan Schakowsky (D-Ill.) asked whether Americans under single-payer would lose choices for care, Hadley gave some reassurances. He said that since a single-payer system would combine every network that currently exists, "all providers would participate and be potentially available."

    But there were plenty of caveats. For instance, depending on how the government decided to pay doctors, a single-payer system could also cause doctor shortages, Hadley warned.

    He also advised lawmakers constantly that functionality of a single-payer system would depend on what the government agrees to physicians and hospitals: these rates would determine the healthcare supply and the government's ability to control costs. And he noted that policymakers would have to consider global budgets and prior authorizations as ways to control spending.

    However, lawmakers largely chose not to dive into these details, other than critical Republicans who warned of additional government bureaucracy and decisions to limit care. Ultimately, the testimony presented a grab-bag of issues for the panel members to advocate for their own point of view of a single-payer system.

    Budget Committee Chair Rep. John Yarmuth (D-Ky.) based Wednesday's hearing on the recent CBO analysis he commissioned, which posed various issues that lawmakers should consider if they want to design a single-payer system for the country. The report didn't scrutinize any particular single-payer proposal, nor did it estimate costs. Various independent estimates put the cost at about $32 trillion over a decade.

    While the U.S. spent $3.5 trillion on healthcare in 2017 and economists say the overall costs could shrink under a single-payer system, the rub for most is that the government would have to shoulder a considerable share of those expenses that are currently borne by the private market.

    The other concern is disruption. Hadley told lawmakers in his opening statement that he primarily wanted to help them understand the complications of restructuring healthcare, especially the cost and the intertwining of the economy with the current system.

    "It would involve significant changes for all participants—individuals, providers, insurers, employers and manufacturers of drugs and medical devices," Hadley said. "Because healthcare spending currently accounts for about one-sixth of the nation's economic activity, those changes could significantly affect the overall U.S. economy."

    When it came to the elephant in the room — employer sponsored insurance — lawmakers' questions signaled how dicey that issue can become.

    Yarmuth laid it out in his opening remarks, where he criticized the status quo as wasteful and inefficient.

    "There is a consensus among economists that our system of employer-based coverage displaces wages," the chairman said. "Relieving employers from the burden of providing coverage will empower American companies to raise employee wages, expand their businesses and help to grow our nation's economy."

    Rep. Ro Khanna (D-Calif.), a staunch advocate for Medicare for All, tried to push Hadley to say single-payer would help workers by increasing their wages.

    But Hadley proved evasive, declining to affirm Khanna's question whether a single-payer healthcare system is "one of the biggest things we could do on wage stagnation." Hadley wouldn't absolutely agree that single-payer would raise wages for most Americans, although he acknowledged that it's possible to design a system that would cost some people less and also drive up their salaries.

    Wednesday's hearing served as a contrast to last month's testimony in the House Rules Committee where lawmakers discussed specific legislation on Medicare for All by progressive Rep. Pramila Jayapal (D-Wash.). Her bill is also expected to get a hearing in the Budget Committee, where she is a member.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Abortion clinic
    Idaho hospital halts obstetrical care as abortion laws become stricter
    mh_20160711p29_bills_i.jpg
    State, local governments pay off medical debt relief with COVID funds
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Modern Healthcare Alert: Sign up for this breaking news email to be kept in the loop as urgent healthcare business news unfolds.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Digital Health
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Unwell in America
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing