Hospitals Present a Major Roadblock to Medicare for All Act

Although hospitals claim to support "universal coverage," they are opposed to having a state or federal government be the sole funding authority, reports the Washington Examiner . The Medicare for All Act would insure all Americans through Medicare, but hospitals do not relish the idea of the government scrapping private insurers. They say it would either require tax hikes or pay cuts for doctors and hospitals, prompting closures, layoffs, and long lines for care. Hospital lobbyists have been urging Congress to fix the Affordable Care Act (ACA) with additional federal funding, and have attempted to encourage more states to expand Medicaid under the ACA to cover individuals making $16,000 annually. Although Democrats criticize drug and insurance firms for high costs, in point of fact hospitals are the biggest spenders at 32 percent, according to the Centers for Medicare and Medicaid Services. In comparison, prescription drugs comprise 10 percent of spending while doctors account for 20 percent. The balkanized U.S. healthcare system works to hospitals' advantage, as they can charge private insurers more to fill the void left by the uninsured and government programs. "For hospitals single-payer insurance would be devastating," says Healthcare Leadership Council President Mary Grealey. "Fiscally, it would be very difficult for hospitals to survive if the vast majority of their beneficiaries were on Medicare."