Congress: Help Patients Save Money!

Should you pay for hospital overhead when you see your doctor? Of course not.

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Dear Officials:

We urge you to support legislation that ensures all hospital-owned facilities will be reimbursed at the same rate as independent facilities. It’s unfair to both taxpayers and patients that the government reimburses a hospital doctor more than an independent doctor for the exact same service! Reimbursing independent doctors less makes it impossible for them to compete, so they sell out to hospitals, which leads to regional monopolies and higher costs for patients. According to an analysis by the nonpartisan Citizens for a Responsible Federal Budget, policies that encourage site-neutral payments in the commercial insurance market would cut overall healthcare costs and save taxpayers $117 billion over ten years.

Sincerely,

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Medicare currently pays higher reimbursements to hospital-owned facilities compared to independent physician practices and other outpatient facilities. This creates a financial incentive for large hospital chains to merge with outpatient facilities, resulting in higher reimbursements from Medicare but at the expense of patients and taxpayers. The Congressional Budget Office estimates that implementing "site-neutral payments," or laws that ensure all hospital-owned facilities are reimbursed at the same level as independent doctors, would save taxpayers over $117 billion in ten years and reduce premiums and cost-sharing for Medicare beneficiaries by $94 billion.