Thank You Sir, May I Have Another?
If you're a fan of the current health care system, prepare to be dazzled - Governor Doyle is about to offer you more of the same at a higher price! Hold on to your toupee!
With Wisconsin facing a $652 million budget deficit, Doyle has introduced a plan to raise taxes on hospitals and consumers in order to attract more federal matching funds. As noted previously in this newsletter, Doyle's tax increase will increase health care costs for consumers, when the hospitals pass the tax on to sick people. Plan supporters say that all the new federal matching money will go to hospitals to boost Medicaid reimbursement, thereby holding down costs to hospital consumers. This line has apparently been swallowed whole by the state's largest business organization, Wisconsin Manufacturers and Commerce, who count Aurora Health as one of their members. WMC previously opposed the Governor's new Medicaid funding scheme precisely because it raises health care costs for consumers and because there's no guarantee the federal government will continue the funding rate in the future. While some of the federal money may make its way back to hospitals, it will be funneled to hospitals with high Medicaid-funded patient loads - specifically, hospitals in poorer areas. So essentially, it's just another income redistribution scheme meant to micromanage the flow of wealth, millions for Milwaukee, and pennies for Polk! Of course, all of this assumes that Doyle will actually send the new money to these hospitals - not exactly a sure thing, given the Governor's affinity for raiding pots of money. But, if he does break with tradition and keep his word, in every other hospital in the state, it will be more expensive for you to have your broken ankle examined, since your emergency room is going to pass the tax on to you. Furthermore, the hospital tax is a one-time fix, a band-aid on the festering boil known as our state budget debt. There's no guarantee the federal match will be available to fuel future budgets, but once the state increases base spending, we're stuck with it. Pennsylvania is planning the same type of hospital tax matching fund scheme, and once enough states come calling with their hands out, the feds are quite likely to just turn off the spigot. At the same time, the Milwaukee Journal Sentinel highlighted a very real change that can save consumers money - medical billing transparency. Instead of "fixing" health care by raising taxes, costs can be held in check by providing free market price transparency. When health providers can no longer hide the cost of their medical procedures, consumers will be empowered to shop around for business. As a result, they will receive better care and lower prices.
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