CBO score relies in a 41% cut in pay for doctors

Here’s the letter. It states very clearly that in order for this healthbill to result in a deficit reduction, doctors must get a 21% reduction in Medicare rates effective on April 1 of 2010, and a further 2% reduction in rates every year for the next decade.

CBO’s Letter to Rep. Ryan

2 responses

A 41 percent cut will result in an absolute meltdown of available medical services. The 20 % cut will be highly destructive. 41% will be devastating.
When reimbursement is arbitrarily cut below the costs of production; guess what? People stop producing. This is as true for milk as it is for medical care. Can you expect doctors and hospitals to receive a negative income (after expenses are covered)? Of course not.
When I was in Canada, I was paid 12 dollars to use x-ray guidance to selectively inject
painkilling and anti-inflammatory medicine into precise locations in the patient’s spine. For twelve dollars I incurred potentially millions of dollars of liability. When I realized that, I quit doing them as any sane person would. The same mentality exists behind arbitrarily setting prices too low. The solution is let the martketplace figure out the correct price.

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