Mitt Romney turned 65 today, and he celebrated by having his campaign staff belch out a misleading memo about Medicare (Mitt actually did not enroll in Medicare, so he now must turn to the private market with a mere $250 million in personal wealth to protect him). Romney tried to claim that President Obama’s policies, rather than the GOP’s, would end Medicare as we know it. This is the typical misreading of the policy in the Affordable Care Act of “cutting Medicare,” when it actually eliminated wasteful payments to Medicare Advantage (and by the way, Medicare Advantage has actually thrived as a result). The main question Romney asks is, “Why is President Obama ending Medicare as we know it by allowing it to go bankrupt in less than 15 years?”
But the danger for Romney – and all budget hawks with their knives out for Medicare – comes in this chart. It shows that per-capita Medicare spending is actually declining, as the program becomes better at reining in costs. If this continues with ACA reforms, you will see cost growth in Medicare dip below GDP on a per-capita basis. Because of the expected growth of the Medicare rolls as the baby boom generation retires, we’ll still see increased Medicare spending. But the slowing of spending growth would upend analyses of the draining of the Medicare coffers.
Some have presented this as a vindication for the ACA. But that statute has only been in place for barely two years, with most of its cost-cutting features still not in effect. [E.g., the GOP has refused to allow any appointments to the Independent Payment Advisory Board, intended to watch costs and recommend more cost-effective treatments for Medicare.] Anyway, this reduction is part of an historical trend. No, a more logical explanation relates to the administrative and cost-saving success of single-payer systems generally. Experiments with cost containment simply have much more ability to affect a large portion of the market in a single-payer world than in a world with a series of different interlocking payers. Medicare keeps costs down because it’s well-situated as a health care system generally to make the most of its market power.
A sustainable cost curve in Medicare paired with out of control costs in the private market would make the case extremely clear over what health care system Americans should move toward. That would be problematic for both Romney and Obama, along with practically every other national politician. The implication would be that a single payer system simply works better for health care.





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Medicare spending per beneficiary is always tied to recessions. Medicare is not free care, and just like everybody else seniors feel the pinch and they skimp on health spending. Furthermore there are some economies of scale, such that when the number of beneficiaries go up the overall costs go down. But there is no way to achieve sustainable cost control with a private payer system coexisting with Medicare.
What’s concerning me is that Sanders’ money for CHCs is getting whittled away. If you have Medicaid but you have no access to care, let alone specialists and procedures, you really don’t have insurance.
“Medicare is not free care, and just like everybody else seniors feel the pinch and they skimp on health spending.” so true. I wonder how many realize that Part C -Medicare Advantage- is a subsidy to HMO’s that runs from $500 to $800 a month -depending on the ‘consultants’ who have contacted me about enrollment.
And, in my case, it comes down to paying a credit card bill for dental work and a replacing a fuel pump cost or enrolling in Medicare; can’t afford both even though my SS puts me in the ‘extra help’ part of Medicare.
i for one dont care
we have spent 4,000,000,000,000.00$ on KILLING brown people
how much to help sick people?
dumbass country
just had a molar root canal in france 89 euros…too bad i cant live here now
we must demand better
India just broke a Bayer patent,cause their country needed AFFORDABLE meds
other countries get it!…its life or death
Since the Reagan administration, the attempts to control cost of Medicare have adversely affected the entire healthcare system by instituting a regime of micro-managed fee-for-service charges that can be manipulated by providers to maximize revenue. And the increased co-pays and deductibles mean that folks on Medicare are discouraged from seeking regular monitoring of chronic conditions or regular preventive care (preventive care can be billed as an office visit and the provider can collect the standard fee from Medicare and charge the patient with the difference). With office visit charges in the $100 range, with increased use of nurses instead of lab techs for INR monitoring, it is very easy to run up multiple-thousand dollar bills if your sole income is Social Security.
We need to stop the MBA nonsense that pricing health care discourages “overuse”. Healthcare is not something that folks see as a “good” but as a necessary evil. Demand is self-limiting with improved health.
Medicare shows that single-payer healthcare would reduce costs, but the shift to single-payer healthcare should come with structural changes to the healthcare system that eliminates the layers and layers of administration and MBAs. And the $1 million salaries of “CEOs” of major religious and university large-scale healthcare systems embracing multiple hospitals, hundreds of practices, and thousands of physicians.
And there is no rational reason that dental and vision should be excluded from single-payer healthcare.
The 1970′s/80′s Rand study (it was a a 3 to 6 year study) only showed that social contact health care (pretending to be ill so as to see a doctor for social contact) needed only a $2 to $10 co-pay to disappear.
Reagan folks took that study and ran with it into the Medicare savings account nonsense of you pay the first $5000 and that will mean you self select to keep health care costs down as you allow the car insurance folks (the casualty companies) get into the funds accumulation business previously reserved for the highly regulated life/annuity insurance folks.
There are over 500 forms for the same health service under our private system – and they resist a common form. Doctors offices spent 6 figures just submitting claims.
So just save a lot in your MSA and buy that health catastrophe policy with the $5000 deductible and all will be well.
Too bad the real question is, what works better for health insurance profits?
I am on Medicare now. The MSA/catastrophic route only makes sense if you have no chronic conditions and can afford the $5000 to go into the MSA. The proportion of the population who can do that is likely less than 50%.
I understand the amount of time providers spend collecting from insurance companies, but an increasing practice is to stick the patient with the bill to the point of putting it out for collection, and then reimbursing the patient for any overcharges when the payment finally comes in. But when it is settled, the collection calls do not cease.
In my area, there are not a whole lot of “doctors offices” left. They have been scarfed up by four major medical systems, two of which are university run. There not longer are independent hospitals outside of these four large systems. They make a minimum effort to collect from insurers before having patients try to deal with insurers. Patients are caught in the middle between two large corporations.
If that hasn’t happened in your neighborhood, it’s on its way.
No kidding.
Who gives a stuff if single-payer works “better” for the 99%??
There’s GOLD in them thar health insurance premiums, co-pays, whathaveyous… that’s what really matters!
I think we can see overwhelming evidence that single payer is cheaper. Just look at the rest of the developed world.
Some people think that the whole concept of for-profit medicine is wrong.
If you got into the medical field to make lots of money, I suspect you’re not much of a doctor. Get rid of the middle-man, and everyone (except insurance companies)will be far better off.
Well indeed, which is why here in the UK the Conservatives are pushing through reforms which could, effectively, turn 49% of NHS hospital practice over to the private sector.
Not only will 60 years of progress towards an integrated health service disappear, but we can be sure that the privateers will cherry-pick only the most lucrative procedures (vide: the UK and US postal services).
Any current user of the NHS recieves a chain of care from her/his Practice Nurse through GP, through Consultant to Specialist with nothing other than the best medical option for the individual patient under consideration. I fear we are about to lose this.
Would you be shocked and amazed to learn that the Chairman of the NHS NHS Co-operation and Competition Panel (which oversees the interaction between the NHS and private companies) collects a $1,250,000 salary from Mckesson?
Our elites are pushing your failed health system, your elites are pushing our failed austerity policies.
Why… it’s almost as if they’re one and the same!
I guess it’s that “special relationship” forged by FDR and Churchill /s
Gosh, I had this silly-ass idea that British “conservatives” may actually be conservative; not the money-grubbing reactionary bastards that own the US of A.
Perhaps they once were. I’ve heard tell of a mythical beast called the “Eisenhower Republican”, apparently they once stalked the wide open prairies advocating strong Unions and a top marginal tax rate of 90%.
Those days are long gone. Some social issues aside (and we’ll need our gay wife or husband by our hospital bed to discuss whether or not we’ll need to sell the house, it seems) both our conservatives are cut from the same cloth. They went to the same colleges, they’re advised by the same experts and think tanks they’re funded by – and recieve sinecures from – the same corporations.
The lockstep has accelerated since the 80′s.
Reagan: “Government does not solve problems; it subsidizes them.” / Thatcher: “There is no such thing as Society.”; Air Traffic Controllers / Miners; Savings and Loans / BCCI and Lloyds of London; Grenada / The Falklands; Bosnia / Bosnia; Iraq / Iraq; Global Financial Crash…
Same attacks on Unions, same disregard for the poor and infirm, same fervour for deregulation and corporate welfare.