“The folks at The Cleveland Clinic, a highly integrated provider organization that has been touted as a model for the sort of team-driven health care that ACOs are supposed to encourage, aren’t buying the promises made by the administration and its backers. Last month, I noted that the Clinic was disappointed with the regulations. Since then, its officials have expanded their criticism in a new letter written to Medicare director and superstar ACO-wonk Donald Berwick.”
“The feds argue that folks without insurance affect commerce when they consume care without paying for it. Providers then pass along the cost of that uncompensated care to those with insurance.
But requiring everyone to buy insurance will not solve this problem. In fact, the individual mandate will result in higher uncompensated care costs.
The cure, so to speak, is worse than the disease.”
“Now, with 50 uncompetitive state markets and new federal regulations on what is or isn’t an acceptable insurance plan on top of existing state laws, there will actually be less room for price-cutting competition in health care. You can expect insurance costs to rise as a direct result.”