Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

How Medicaid’s bait and switch fooled doctors

Brian C. Joondeph, MD
Policy
March 7, 2015
531 Shares
Share
Tweet
Share

Medicaid expansion “is one of the biggest milestones in health care reform,” according to the Obamacare Facts website. The goal was to provide insurance coverage to low-income Americans, specifically the uninsured. The major problem with Medicaid is low reimbursement. “Due to low payouts, many doctors don’t take Medicaid, and the quality of care tends to be poor,” admits the website. The solution was to raise the amount doctors get paid under Medicaid to the same level as Medicare. Obamacare did just that.

That’s the bait.

Unfortunately, this was a temporary fix, lasting only two years. As doctors rang in the New Year, they saw a 43 percent cut in Medicaid reimbursement.

That’s the switch.

This shouldn’t be breaking news. It was in the Affordable Care Act from the beginning. Then again, we were warned by then Speaker Nancy Pelosi, “We have to pass the bill so you can find out what is in it.” Yet to the journalistic sleuths at the New York Times and Washington Post, this is a surprise, described as “a new threat.” That’s like saying Iran and North Korea are new threats. In the almost five years since passage, shouldn’t reporters in major news organizations have actually read the bill?

The temporary Medicaid payment increase was a classic bait-and-switch move, selling an apparent bargain followed by large price increase. Subprime mortgages are a classic example of bait and switch. Entice homebuyers with attractive interest rates that they can’t afford when the rates jump. The New York Times has been all over this topic, but they seemed to have missed the Medicaid scam until now. Another example is the free trial year of satellite radio and navigation in your new car. After a year, if you don’t want to give up the service you have come to like and depend on, the free trial now costs $15 a month.

The Medicaid bait is working. Sixty-eight million Americans are enrolled in Medicaid, over 20 percent of the population. Now in the system, what will happen to patients if their doctors are suddenly paid 43 percent less? The Urban Institute predicts; “Significant drops in primary care reimbursement may lead physicians to see fewer Medicaid patients, potentially leading these patients to have difficulty finding a physician or getting an appointment.” What a surprise.

Primary care practices pay overhead of 60 percent, according to MGMA — a $100 payment minus $60 in practice overhead leaves the practice with $40 in profit. Now cut that payment by 43 percent beginning Jan. 1. The $100 payment is now $57. The overhead cost hasn’t changed, and revenue becomes negative $3. A real sustainable business model.

Suppose restaurants were told that they couldn’t charge more than $10 for a meal. Great for McDonald’s and Taco Bell, but not for most restaurants. They either go out of business or else start serving fast-food fare. What will physicians do?

The simplest solution is for physicians to opt out of Medicaid. Or at the least, stop accepting new Medicaid patients. Fewer than half of physicians are willing to accept new Medicaid patients, according to a recent physician survey. The University of Colorado Hospital, a safety net hospital for the state, closed its urology clinic to Medicaid and its internal medicine clinic to Medicare. Even the world famous Mayo Clinic is no longer seeing Medicare patients at their primary care clinic in Arizona. Yes, the same Mayo Clinic that was praised by President Obama as a model system. If these hospitals and clinics are opting out of Medicare, what hope is there for Medicaid, which only pays about 60 percent of what Medicare pays?

What to do? How about a single-payer national health care system to handle this insurance mess? That was tried in Vermont. Their socialist U.S. senator, Bernie Sanders, said, “The quickest route toward a national health care program will be when individual states go forward and demonstrate that universal and non-profit health care works, and that it is the cost-effective and moral thing to do.” How did that experiment work out? Not so well. Single-payer struck out in Vermont.

Single-payer is not doing too well in the U.K., either. The NHS, another model for Obamacare, is a “system creaking at seams amid rising population.” A recent report reveals, “People are now routinely waiting more than 12 hours on trolleys even after doctors have decided they need a hospital bed.” At some clinics, “GPs are being forced to offer patients quickfire two-minute consultations.” Cut Medicaid by 43 percent and expect much the same here.

Again, this should come as no surprise. It was in the Affordable Care Act from the beginning. Where was the analysis and debate five years ago? Even the author of the bill, Sen. Max Baucus, admits he never read it. What about our intrepid journalists? CNN is far more interested in the activities of Sarah Palin’s children and can’t even get that story right.

Instead we are left with a mess, confirming Abraham Lincoln’s admonition, “You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.” The Obamacare Medicaid bait and switch sure fooled many.

Brian C. Joondeph is an ophthalmologist and can be reached on Twitter @retinaldoctor. This article originally appeared in WND.

Prev

MKSAP: 60-year-old man with type 2 diabetes mellitus

March 7, 2015 Kevin 0
…
Next

Don't be scared: Let's see what's really in vaccines 

March 7, 2015 Kevin 4
…

Tagged as: Medicare, Public Health & Policy

Post navigation

< Previous Post
MKSAP: 60-year-old man with type 2 diabetes mellitus
Next Post >
Don't be scared: Let's see what's really in vaccines 

More by Brian C. Joondeph, MD

  • Ophthalmology in the era of COVID-19

    Brian C. Joondeph, MD
  • An ophthalmologist analyzes Joe Biden’s red eye

    Brian C. Joondeph, MD
  • When medical science becomes fake news

    Brian C. Joondeph, MD

More in Policy

  • The realities of immigrant health care served hot from America’s melting pot

    Stella Cho
  • Healing the damaged nurse-physician dynamic

    Angel J. Mena, MD and Ali Morin, MSN, RN
  • Deaths of despair: an urgent call for a collective response to the crisis in U.S. life expectancy

    Mohammed Umer Waris, MD
  • Breaking down the barriers to effective bar-code medication administration

    Amy Dang Craft
  • The locums industry has a beef problem

    Aaron Morgenstein, MD
  • Canada’s health workers are sounding the alarm. We must act, now.

    Ivy Lynn Bourgeault, PhD
  • Most Popular

  • Past Week

    • What is driving physicians to the edge of despair?

      Edward T. Creagan, MD | Physician
    • The untold struggles patients face with resident doctors

      Denise Reich | Conditions
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician
    • From clocking in to clocking out: the transition to retirement

      Debbie Moore-Black, RN | Conditions
    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • The real cause of America’s opioid crisis: Doctors are not to blame

      Richard A. Lawhern, PhD | Meds
    • Nobody wants this job. Should physicians stick around?

      Katie Klingberg, MD | Physician
    • The vital importance of climate change education in medical schools

      Helen Kim, MD | Policy
    • The fight for reproductive health: Why medication abortion matters

      Catherine Hennessey, MD | Physician
    • Resetting the doctor-patient relationship: Navigating the challenges of modern primary care

      Jeffrey H. Millstein, MD | Physician
    • It’s time for C-suite to contract directly with physicians for part-time work

      Aaron Morgenstein, MD & Corinne Sundar Rao, MD | Physician
  • Recent Posts

    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Maximizing physician potential: How coaching can aid in conflict resolution, enhance health care leadership and build stronger teams

      Asha Padmanabhan, MD | Physician
    • The future of education: AI empowerment, YouTube college credits, and the impact on traditional colleges

      Harvey Castro, MD, MBA | Tech
    • The beauty of a patient’s gratitude

      Dr. Damane Zehra | Conditions
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 14 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

CME Spotlights

From MedPage Today

Latest News

  • Moderna's Steep COVID Vaccine Price: Corporate Greed or Capitalism?
  • House Republican Argues Against FDA Budget Increase
  • Prescriptions for Stimulants Jumped During the Pandemic
  • Federal Judge Strikes Down ACA's Preventive Care Coverage Requirements
  • Pandemic Jump in ED Visits for Firearm Injuries Continued Into 2022

Meeting Coverage

  • VTE Risk in Recurrent Ovarian Cancer Increases With More Lines of Chemotherapy
  • Obesity's Impact on Uterine Cancer Risk Greater in Younger Age Groups
  • Oral Roflumilast Effective in the Treatment of Plaque Psoriasis
  • Phase III Trials 'Hit a Home Run' in Advanced Endometrial Cancer
  • Cannabis Use Common in Post-Surgery Patients on Opioid Tapering
  • Most Popular

  • Past Week

    • What is driving physicians to the edge of despair?

      Edward T. Creagan, MD | Physician
    • The untold struggles patients face with resident doctors

      Denise Reich | Conditions
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician
    • From clocking in to clocking out: the transition to retirement

      Debbie Moore-Black, RN | Conditions
    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • The real cause of America’s opioid crisis: Doctors are not to blame

      Richard A. Lawhern, PhD | Meds
    • Nobody wants this job. Should physicians stick around?

      Katie Klingberg, MD | Physician
    • The vital importance of climate change education in medical schools

      Helen Kim, MD | Policy
    • The fight for reproductive health: Why medication abortion matters

      Catherine Hennessey, MD | Physician
    • Resetting the doctor-patient relationship: Navigating the challenges of modern primary care

      Jeffrey H. Millstein, MD | Physician
    • It’s time for C-suite to contract directly with physicians for part-time work

      Aaron Morgenstein, MD & Corinne Sundar Rao, MD | Physician
  • Recent Posts

    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Maximizing physician potential: How coaching can aid in conflict resolution, enhance health care leadership and build stronger teams

      Asha Padmanabhan, MD | Physician
    • The future of education: AI empowerment, YouTube college credits, and the impact on traditional colleges

      Harvey Castro, MD, MBA | Tech
    • The beauty of a patient’s gratitude

      Dr. Damane Zehra | Conditions
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today iMedicalApps
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

How Medicaid’s bait and switch fooled doctors
14 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...