Wednesday, August 15, 2012

It is somewhat illuminating to see Obama refer to Medicare payments to doctors and hospitals as 'subsidies to insurance companies'.

Doctors and hospitals provide services to Medicare patients and get paid by Medicare according to the price schedule in effect at the time.  The amount they get paid is less than what they get paid for performing the same service to a non-Medicare patient, and so much so that doctors routinely refuse to accept new Medicare patients. 

Where is there a 'subsidy'?  A subsidy is money given to someone that is over and above the value of any services provided.  Where are the doctors and hospitals who are getting reimbursed money that exceeds the value of the medical care they've provided?  Does Obama not know medical providers are actually working for the money they get paid?