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>>One hospital would get about $4,200 from Medicare for removing someone’s gallbladder. The same hospital would get $7,400 from commercial insurers. That's rou
by onetimemanytime 8y ago
>>One hospital would get about $4,200 from Medicare for removing someone’s gallbladder. The same hospital would get $7,400 from commercial insurers.
That's roughly double. Now, are Medicare lower because private insurance subsidizes them or hospitals can actually make it happen (survive) with half price billing?
- JoeAltmaier 8y agoA hospital wants to keep its facility 100% busy, because facilities have a fixed-cost component. Like an airline that offers cheaper seats to some travelers to fill the plane.
- onetimemanytime 8y agoOK, but: Medicare spending: $705.9 billion in 2017 Medicaid spending: $581.9 billion Private health insurance spending: $1,183.9 billion Out of pocket: $365.5 billion https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-reports/nationalhealthexpenddata/nhe-fact-sheet.html https://www.cms.gov/research-statistics-data-and-systems/sta... as you see Medicare+Medicaid make a nice chunk of health care spending. Airlines lower prices as a last minute resort, they'd go bankrupt if half (or a nice %) of seats were to be sold at half price.
- JoeAltmaier 8y agoHm. Airlines raise the prices at the last minute. They estimate how many seats will go unfilled and offer cheap seats first/early.