Medicare’s fiscal outlook is dire, and the program is in desperate need of fundamental reform. However, meaningful changes are unlikely to pass Congress for years.
Whether its pharmaceuticals or health insurance, Vice President Kamala Harris appears to have only one healthcare policy – impose price controls. The untenable financial position of many doctors and private doctor practices due to tightening Medicare reimbursement rates exemplifies the folly of her preferred approach.
As I document in a recent analysis, the government has imposed backdoor price controls on physicians by allowing inflation to significantly erode Medicare’s provider reimbursement rates. Over the decade between 2013 and 2022, while the cost of living increased by 27.4%, Medicare has increased its provider reimbursement rates by 1.3%.
Unfortunately, this is not a problem of just the last decade. When the American Medical Association examined the growth in inflation adjusted physician reimbursement rates between 2001 and 2024, they found that “adjusted for inflation in practice costs, Medicare physician payment declined 29% from 2001 to 2024.”
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Price Controls Are Harming Doctors
Wayne Winegarden
Medicare’s fiscal outlook is dire, and the program is in desperate need of fundamental reform. However, meaningful changes are unlikely to pass Congress for years.
Whether its pharmaceuticals or health insurance, Vice President Kamala Harris appears to have only one healthcare policy – impose price controls. The untenable financial position of many doctors and private doctor practices due to tightening Medicare reimbursement rates exemplifies the folly of her preferred approach.
As I document in a recent analysis, the government has imposed backdoor price controls on physicians by allowing inflation to significantly erode Medicare’s provider reimbursement rates. Over the decade between 2013 and 2022, while the cost of living increased by 27.4%, Medicare has increased its provider reimbursement rates by 1.3%.
Unfortunately, this is not a problem of just the last decade. When the American Medical Association examined the growth in inflation adjusted physician reimbursement rates between 2001 and 2024, they found that “adjusted for inflation in practice costs, Medicare physician payment declined 29% from 2001 to 2024.”
Read the entire op-ed in Townhall.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.