An estimation of $352 billion would reduce the total health care expenditures for people opting for private health insurance in this year 2021 if the private payers use Medicare rates for paying the rates of Hospitals and other health care providers instead of paying a currently substantial-high rate. This would reduce at least a 41% decrease from the $859 billion estimated healthcare spending for people with private insurance in 2021. As a result, the amount saved from this makeshift can be used among employers and employees and other non-group markets, concludes the latest analysis by KFF.
- The price gap between private insurance and Medicare is considerably huge with 27% money deducted for inpatient services and 14% for doctor office visits. But after the reduction in healthcare service, approximately 45% of the total reduction would be paid for outpatient hospital services thereby benefitting every individual under its umbrella.
- Aged and old people tend to use more health care services than young people and this would lead to a one-third reduction from the lower health care services. On average the amount of health care being spent per person would lessen $2096 less for adults and $ 1033 less for children if Medicare rates were used.
- For many years the Federal and state lawmakers have requested for using Medicare rates to furnish a fix in the healthcare prices. The new KFF plan illustrates the methods of reducing the healthcare plan by using lower payment rates which would be implemented on different types of proposals like having a Medicare plan for all and lowering the age factor for applying the Medicare plan and so on.
- A substantial reduction in healthcare would be possible if private insurance is reimbursed to medicare rates. Although this would lead to total opposition from the private payers because the plan would lead to their decrease in revenue and lower generation of profits.
- This plan doesn’t consider the type of effects it would have upon the sector on implementation neither it estimates the effect it would cause upon the government revenue or expenditure. This plan solely focuses on reducing healthcare and bringing relief to the patient’s load of medical bills.