When the government pays health care providers less than it costs the provider to provide the service, the providers will elect not to provide the service. I really tried hard to get another reference to provide in there…
Noting the obvious in Dallas; Doctors threaten to pull out of Texas Medicaid.
Cuts to fees paid doctors in the state health care program for low-income Texans is raising fears that already declining physician participation will fall further.
The Dallas Morning News reports the health care and insurance industries fear a 1 percent Medicaid fee cut scheduled for Sept. 1 will be the first in a series. That’s as state leaders order state agencies to cut their next two-year budgets by 10 percent because of an expected $18 billion revenue shortfall.
It’s been happening in Massachusetts and many other places around the country too. Did you expect anything different? Are the doctors being greedy? After all, they make money by providing services to other patients – like the ones who pay in cash, have their own insurance, or employer-sponsored insurance through private companies.
I’m not saying health care providers and hospitals accept all private insurance. The fact is, network negotiations between many insurers and many providers is an ongoing thing. Sometimes, parties do not come to an agreement and the contract is terminated. But participants in private or employer-sponsored programs almost always have an option be it a different doctor, hospital or insurance company.
With government sponsored entities like Medicare and Medicaid the customer generally has no other option if the program fails them. The program is falling apart as more and more doctors politely refuse to work with the system since they lose money all the time.
This is what a single payer systems like Medicare and Medicaid are destined for … failure.