2% is a lot

“Unless Congress acts to change the sequester, the Centers for Medicare & Medicaid Services will reduce Medicare fee-for-service payments by 2% for service/discharge dates and durable medical equipment/supply dates starting April 1, the agency announced Friday. CMS said it will apply the 2% reduction to all claims.”

Do you remember your first paycheck in January?  Payroll tax cuts expired in January and most people saw their take home pay decrease by 2%.  I’m guessing most of you noticed the difference in your paycheck and when I say noticed, I mean you’ve actually changed your spending (or saving) habits because of the 2% decrease.

The same will be true in health care.  An across the board 2% reduction in Medicare payments will be painful and it will require that health care organizations change their spending habits.   I am an advocate for decreased federal spending and I am an advocate for real Medicare reform.  Across the board, flat spending cuts are not reform they are irresponsible.

I know irresponsible is a strong word but across the board cuts are just kicking the can down the road they do nothing to control spending they just mean we are going to accept spending at the same rate but with a 2% discount.  Real reform would look at how we can reduce spending by reducing unnecessary services or increased personal responsibility.

About Craig Thompson

I am a young professional with two great sons, and I work in the healthcare setting. I am employed in hospital administration and serve as Chief Operating Officer at Golden Valley Memorial Healthcare in Clinton, Missouri. These are challenging and exciting times in healthcare and my blog will focus on healthcare, raising boys or being raised by boys, and living in mid America.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s