Amitai Etzioni, a professor at The George Washington University in Washington, D.C., recently wrote an op-ed for The Huffington Post that encourages lawmakers and healthcare leaders to focus on cutting costs before reducing reimbursement.
Mr. Etzioni said there is currently more focus on reducing Medicare reimbursements than on reducing the actual cost of healthcare. If Medicare is reimbursed but costs remain the same, Mr. Etzioni says patients must choose whether to pay for uncovered services out-of-pocket or forgo medically necessary treatments.
Mr. Etzioni challenged arguments that say increased patient financial responsibility will turn people into wiser and more frugal healthcare shoppers. He cited a 2004 Institute of Medicine report on health literacy in the United States that found over 300 studies demonstrating that most people do not understand health information that is intended for them.
He pointed out that while customers purchase other items regularly enough to become savvy about the cost, purchases such as a total hip replacement or a bone marrow transplant are likely rare enough that customers cannot benefit from comparison shopping.
Mr. Etzioni said healthcare leaders should focus on cutting unnecessary costs before they target reimbursement.
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Mr. Etzioni said there is currently more focus on reducing Medicare reimbursements than on reducing the actual cost of healthcare. If Medicare is reimbursed but costs remain the same, Mr. Etzioni says patients must choose whether to pay for uncovered services out-of-pocket or forgo medically necessary treatments.
Mr. Etzioni challenged arguments that say increased patient financial responsibility will turn people into wiser and more frugal healthcare shoppers. He cited a 2004 Institute of Medicine report on health literacy in the United States that found over 300 studies demonstrating that most people do not understand health information that is intended for them.
He pointed out that while customers purchase other items regularly enough to become savvy about the cost, purchases such as a total hip replacement or a bone marrow transplant are likely rare enough that customers cannot benefit from comparison shopping.
Mr. Etzioni said healthcare leaders should focus on cutting unnecessary costs before they target reimbursement.
Related Articles on Coding, Billing and Collections:
20 Essential Benchmarks on Payor Mix in Surgery Centers
One-on-One Education Sessions Can Improve Physician Compliance With ICD-10
Indiana's Zotec Partners Acquires Medical Billing Firm From Florida