Health Care Spending Could Be $350B Less If Private Insurance Uses Medicare Rates

Health Care Spending Could Be $350B Less If Private Insurance Uses Medicare Rates Total health care spending for the privately insured population could drop by an estimated $352 billion in 2021 if insurers reimburse health care providers at Medicare rates, a 41% decrease from the $859 billion in projected private health insurance spending this year, according to a recent Kaiser Family Foundation analysis. Nearly half of the total savings would be on outpatient hospital services, while inpatient services would account for 27% of the reduction. About one-third of the savings ($115 billion) would come from adults ages 55 to 64. On average, per-person health care spending for adults ages 19 to 64 with private insurance would be an estimated $2,096 less if Medicare rates were applied. For people ages 55-64, the potential reduction per person would reach $3,944 on average.     NOTES: Data results do not include changes in administration costs or loading fees. Other spending categories include laboratory, urgent care and skilled nursing facility. SOURCE: "Limiting Private Insurance Reimbursement to Medicare Rates Would Reduce Health Spending by About $350 Billion in 2021," Kaiser Family Foundation. Visit https://bit.ly/3dZcZ2J. Subscribers may read the Health Plan Weekly article in which this infographic appeared online. Learn more about subscribing to AIS Health's publications.