Government administered pricing at the Medicare level for all purchasers of health care services – as suggested in a recent opinion piece that appeared in the Washington Post titled, “There’s a genuine solution to our health-care problem” – would disrupt the fragile financing system that ensures the provision of access to essential services for all Americans, and would prevent private-sector innovation that supports medical research, education and the creation of medical miracles.  It would also threaten access to basic care for those in vulnerable communities.

 

For Medicare, hospitals received payment of only 87 cents for every dollar spent caring for Medicare patients in 2016.  Despite this, hospitals have kept growth of prices for insurers under 2% for each of the last four years. This is despite rising input costs, such as prescription drugs. For instance, hospital spending per admission on prescription drugs rose 38.7% from 2013 to 2105.

 

There is a better solution.  Over the years, hospitals and health systems have strongly supported health coverage for all. Strengthening health care exchanges providing subsidized coverage for the uninsured, combined with expansion of the Medicaid program, remains the best way of extending coverage to more people.   

 

Finally, rapid changes in the health care field require hospitals and health systems to join together with physicians, and other partners to explore new ways to enhance quality, reduce costs, and provide more convenient access to care to meet patients’ needs.

 

Related News Articles

Headline
The Senate Appropriations Committee July 31 advanced the fiscal year 2026 appropriations bill for the Departments of Labor, Health and Human Services,…
Perspective
House members are back in their districts for the August recess and senators are likely to return to their states soon.While lawmakers are home, it’s important…
Headline
The Trump administration today announced steps drug manufacturers must take to lower prescription drug prices in the U.S. to "most favored nation" pricing, the…
Headline
The Department of Health and Human Services today issued a notice announcing a 340B Rebate Model Pilot Program as a voluntary mechanism for qualifying drug…
Chairperson's File
Public
The recently enacted One Big Beautiful Bill Act will bring big changes to health care. AHA President and CEO Rick Pollack joined me for a Leadership Dialogue…
Headline
The House Ways and Means Subcommittees on Health and Oversight held a joint hearing today to discuss lessons learned, challenges and opportunities to improve…