Reflections on the Insanity of the Medicare Payment System

Suppose that in 1965, the federal government observed that great advances were taking place in aircraft design and manufacturing. In order to ensure that Americans were able to take advantage of this, the government legislated “Aircare.”

Flash forward to 2010: “Aircare” pays for our ariplane tickets. It pays the airlines themselves under “Aircare Part A” and the pilots and co-pilots under “Aircare Part B”. It pays claims under Aircare Part A by a “Prospective Payment System” based on “Distance-Related Groups” (DRGs). The DRGS are calculated for non-labor and labor (adjusted for cost-of-living) costs. Etc., etc.

Read the entire post here.

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

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