| This is where things get unfair: You see, Medicare and government-funded insurance programs like TRICARE pay much more when care is provided in a hospital setting compared to what they pay independent providers. Why? Because the law allows it. The government pays hospitals more for the same service than independent physicians. In fact, Medicare pays 106% to 217% more to hospitals than privately owned facilities. Lauren writes: “Hospitals use Medicare rates for billing care for service members and their families who have Tricare, as well as veterans who are covered under the VA for their health insurance.” Here’s the big flaw in the system: This practice incentivizes large hospitals to buy up smaller independent practices, reclassify them as hospital-based, and charge higher prices than they are allowed to. In the process, they create regional monopolies, which push prices even higher and leave patients like veterans and military families with fewer affordable options. It also helps keep health care prices higher for all Americans. The impact: - Higher costs for taxpayers and patients
- Reduced competition as hospitals form monopolies
- No improvement in the quality of care, just higher bills
There is an easy solution. Make Medicare payments site-neutral. Lauren writes: “The principle behind site-neutrality is simple: ‘same service, same price,’ regardless of where you get the care. This would unleash competition and drive down costs for seniors, veterans, and service members, and save taxpayers money, too. Those are wins for everyone.” If Congress tells Medicare to pay hospital doctors the same as independent doctors, i.e., make Medicare payments “site-neutral,” the savings would be substantial. According to the nonpartisan Committee for a Responsible Federal Budget, adopting site-neutral payments would: - Reduce total national health expenditures by up to $458 billion.
- Reduce patients’ out-of-pocket expenses by $73 billion.
- Reduce the federal budget deficit by up to $117 billion.
Some senators and representatives are pushing site-neutral payment legislation, but they need your help to get it across the finish line. Can you please take 60 seconds to contact your lawmakers? The powerful hospital lobby is out to make sure this bill doesn’t see the light of day, so it’s important that Congress hears from you! | 
