Beyond that, Medicare for All will radically change health care for today’s seniors because access to America’s hospitals and doctors for those on Medicare depends on higher payments from private insurance. According to a report by the Centers for Medicare and Medicaid Services, while private insurance often pays over 140 percent of the cost of care, Medicare and Medicaid pay an estimated 60 percent of what private insurance pays for inpatient services, and an estimated 60 to 80 percent for physician services. Most hospitals, skilled nursing facilities and in-home health care providers already lose money per Medicare patient. By 2040, approximately half of hospitals, roughly two-thirds of skilled nursing facilities, and over 80 percent of home health agencies would lose money overall.
The estimated $32 trillion cost of Medicare for All includes the immediate cuts of about 40 percent to hospitals and about 30 percent to physicians now treating patients under private insurance, with these cuts likely growing more severe over time. Will these cuts occur without any negative consequence for patients on timeliness or quality of care?
Here’s another truth — abolishing private insurance would impact today’s seniors on Medicare, because more than 70 percent of Medicare beneficiaries use private insurance to supplement or replace traditional Medicare.