Why Medicare’s Pilot Programs Failed
by John C. Goodman
April 10, 2012
The failure of Medicare’s demonstration projects to reduce the costs of care has been the subject of much disappointment in the health policy world. Recall that these are critical to President Obama’s challenge “To find out what works and then go do it.”
If nothing works, the fallback weapon in ObamaCare is to reduce fees paid to doctors and hospitals. Yet the Medicare actuaries tell us squeezing the providers in this way will put one in seven hospitals out of business in the next eight years, as Medicare fees fall below Medicaid’s. Under this scenario, senior citizens may be forced to line up behind welfare mothers, seeking care at community health centers and in the emergency rooms of safety net hospitals.