RevCycle Intelligence March 2, 2021
Lowering private payer reimbursement to Medicare rates would significantly reduce rising healthcare spending but would slash hospital and other provider revenue.
Healthcare spending would be about $352 billion lower in 2021 if private payers reimbursed providers at Medicare rates, according to a new analysis from Kaiser Family Foundation.
The analysis of data from MarketScan and FAIR Health showed that total healthcare spending for the privately insured population would decrease by 41 percent from the current projected total of $859 billion this year.
Additionally, employer contributions toward employee premiums and patient out-of-pocketing spending would decrease by hundreds of billions of dollars each—$194 billion and $116 billion, respectively—under the scenario.
However, the move would be a detriment to hospital and other provider...
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