Hill May 25, 2023
By John O’Shea and Kofi Ampaabeng

Ongoing concerns about rising health care costs and the looming fiscal insolvency of the Medicare program put increasing pressure on policymakers to rein in health care spending and preserve Medicare for future generations. One policy change could help maintain the program and move the health care system, as well as the way we pay for medical services, in a more sustainable direction. And, unlike most health care reforms, this one is remarkably simple.

There are nearly 64 million Americans on Medicare, the public health insurance program that covers the elderly and younger people with disabilities. For roughly half of them — those enrolled in what’s known as traditional Medicare — the government uses a “fee-for-service” payment system. In this system,...

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