Reinhardt on Equalizing Payments for Medical Care

Discussion in 'Healthcare/Insurance/Govt Healthcare' started by Greenbeard, Nov 13, 2011.

  1. Greenbeard
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    Greenbeard Gold Member

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    Health economist/professor/NYT contributor Uwe Reinhardt wrote a brief article on the Economix blog the other day presenting some of the ideas he put forth in a paper, "The Many Different Prices Paid To Providers And The Flawed Theory Of Cost Shifting: Is It Time For A More Rational All-Payer System?", in this month's Health Affairs (the full text of which is apparently free until Wednesday).

    The subject Reinhardt focuses on is the sometimes vast differences different payers pay for the same health services:

    While that variation occurs within a given facility, he throws in some graphics from the insurer's perspective (seeing huge variations for a given service between facilities):

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    Ultimately, as its title suggests, Reinhardt's paper is about proposing an all-payer system:

    Food for thought.
     
  2. Brutus
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    Brutus Senior Member

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  3. Greenbeard
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    Greenbeard Gold Member

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    I'm not sure you're understanding this. That's rampant price discrimination, in which virtually every payer pays a different price for the same service, depending in large part on the relative market clout of the payer.

    In that case, an increasingly competitive insurance market can raise health care prices, as payers increasingly lack the leverage to negotiate lower reimbursements to providers.

    The point of all-payer rates it that it eliminates that problem and we no longer have to worry about that aspect of competition in insurance markets and we can focus on provider-level competition.
     

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