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Monday, March 08, 2010

Small Biz Health Care Daily: About Those Medicare Cuts?

One of the big assumptions of ObamaCare is that big savings will be found in Medicare. While a government, third-party-payer system is a major driver pushing up health care costs, the reaction from elected officials and their appointees too often is not to fix the third-party-payer problem. Instead, they turn to price controls, with all of the negative consequences that go along with such misguided policy.

Consider an interesting story from showing the problems with government trying to set -- and cut -- prices paid to doctors under the Medicare program.

The reality of how doctors are compensated for Medicare illustrates the problems of government health care in general, and the challenges of dealing with rising costs.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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