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Why did democrats change their tune on hospitals? (Re: health prices)

Posted on 8/20/25 at 8:06 pm
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
73088 posts
Posted on 8/20/25 at 8:06 pm
For most of the 90s and 2000s, democrats and progressives were very much of the belief that hospitals and their pricing structure are one of the major reasons for America’s health care woes.

Bill Clinton, Obama, etc campaigned on regulating hospital pricing.

Fast forward to 2025. Through lobbying and (until recently) legal money laundering via provider taxes, hospitals were able to extract insane amounts of money out of public coffers via juiced Medicaid payment rates. In 2012, Medicaid and Medicare paid around the same per treatment to hospitals.

In 2025, Medicaid pays 2.25 the Medicare rate.

Congress cut off the spigot via the BBB.


I feel like a 2000s democrat would have been outraged at the amount of tax dollars flowing to hospital profits. Yet democrats took the side of hospitals recently re: regulating Medicaid rates.

What changed?
Posted by Rebel
Graceland
Member since Jan 2005
141317 posts
Posted on 8/20/25 at 8:07 pm to
quote:

What changed?


unlike you, the rest of the dems still have TDS.
Posted by Speckhunter2012
Lake Charles
Member since Dec 2012
8130 posts
Posted on 8/20/25 at 8:10 pm to
quote:

What changed?


Fed. Money kickbacks.
Covid kickbacks.
Acceptance of neo-fascism.
Posted by Boomdaddy65201
BoCoMo
Member since Mar 2020
4097 posts
Posted on 8/20/25 at 8:11 pm to
quote:

What changed?



Posted by Purple Spoon
Hoth
Member since Feb 2005
20180 posts
Posted on 8/20/25 at 8:12 pm to
The liberal wealthy and the liberal government dependent.

Neither are affected by hospital fees and insurance cost like the middle class conservatives.
Posted by Sweet Pickles
Member since Mar 2017
445 posts
Posted on 8/20/25 at 8:12 pm to
It’s complicated. Medicaid (and Medicare) don’t reimburse enough to actually keep hospital doors open. Most hospital systems are operating at a 2-3% “profit” margin. That’s not enough to buy new CT machines, expand OR’s, etc. Both republicans and democrats allowed the provider taxes to occur so they would not have to do the dirty work of figuring out how to actually fund government health care programs.
This post was edited on 8/20/25 at 8:14 pm
Posted by Auburn80
Backwater, TN
Member since Nov 2017
9594 posts
Posted on 8/20/25 at 8:22 pm to
quote:

In 2012, Medicaid and Medicare paid around the same per treatment to hospitals.


Where are you getting this information? Medicare pays much better than Medicaid and Commercial pays better than both. Hospitals with heavy M’caid volumes in poor and rural areas have been closing for years. Plus, M’caid is different in every state.
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
73088 posts
Posted on 8/20/25 at 8:23 pm to
I don’t think that’s true anymore

Due to generous federal matching, states have increased Medicaid rates to match commercial avg

Posted by TBoy
Kalamazoo
Member since Dec 2007
27428 posts
Posted on 8/20/25 at 9:13 pm to
quote:

I feel like a 2000s democrat would have been outraged at the amount of tax dollars flowing to hospital profits. Yet democrats took the side of hospitals recently re: regulating Medicaid rates.
Sorry but your post is incomprehensible. What are you advocating?
Posted by cajuntiger1010
Member since Jan 2015
13750 posts
Posted on 8/20/25 at 9:16 pm to
Democrats don’t stand for anything except being against Trump.
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
73088 posts
Posted on 8/20/25 at 9:31 pm to
What makes it incomprehensible?

For *decades*, democrats supported controlling health care costs by not allowing Medicaid reimbursement rates to exceed Medicare rates. This was something Clinton and Obama talked about, as well as major center-left papers and policy commentators. It was good politics, too. Polling regularly finds that 80%+ of Americans support capping Medicaid rates at Medicare rates.

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Over the last 15 years, inflation-adjusted Medicaid payment rates to hospitals have soared. More than half the states have used juiced money from the Feds to hike Medicaid rates to match the commercial avg.
Posted by TigerDoc
Texas
Member since Apr 2004
11422 posts
Posted on 8/20/25 at 9:38 pm to
This post is mostly fair, but the medicaid vs. medicare claim is off - medicaid has almost always paid less than medicare. Even today, hospitals argue they lose money on most medicaid patients, which is why they lean so heavily on provider-tax schemes and supplemental payments.

To your question of what changed, I think the biggest thing was the ACA medicaid expansion. Before ~'14, hospitals ate huge losses from uninsured patients, and politicians of both parties could/would bash “hospital pricing” without much blowback. After expansion, medicaid became the largest insurer in the country (~90 million) and the backbone of rural health care & that seems to have flipped the politics. Cutting hospital medicaid rates now looks less like “fighting corporate fat cats” and more like “risking losing your town's only ER” and thus both parties defend hospital payments more fiercely today. And yeah, industry lobbying.
This post was edited on 8/20/25 at 9:53 pm
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11832 posts
Posted on 8/20/25 at 9:48 pm to
Probably because the nationalized healthcare systems have turned into complete failures in all of those superior countries across the world that our moral betters bragged about for years
Posted by BurlesonCountyAg
Member since Jan 2014
4525 posts
Posted on 8/20/25 at 9:56 pm to
I remember when hospitals were literally stacking bodies in the hallway
Posted by BigJim
Baton Rouge
Member since Jan 2010
14959 posts
Posted on 8/20/25 at 10:52 pm to
quote:

In 2012, Medicaid and Medicare paid around the same per treatment to hospitals.

In 2025, Medicaid pays 2.25 the Medicare rate.



Where are you getting your info?

Posted by DocYatesVA
Yukon, OK
Member since Oct 2022
284 posts
Posted on 8/21/25 at 6:23 am to
Medicaid, which is administered by the State, supplemented by federal monies, historically paid less than Medicare in most places. It can vary from state to state. The main driver of the Medicaid increase was to supplement the large number of illegals who were showing up in the ERs, either using them for their primary care or thru accidents and lack of insurance. The hospitals lobbied for more money to take care of these people since the legislation (EMTALA) basically said they could not be turned away.
Posted by TBoy
Kalamazoo
Member since Dec 2007
27428 posts
Posted on 8/21/25 at 8:06 am to
quote:

For *decades*, democrats supported controlling health care costs by not allowing Medicaid reimbursement rates to exceed Medicare rates.

For “decades” the Medicaid system paid higher reimbursement rates for rural facilities and providers in areas that were disproportionately under serviced. The actual rates paid have always been much more complicated than you sugggest and not due to “democrats.”

So again, what are you advocating?
Posted by Jax-Tiger
Vero Beach, FL
Member since Jan 2005
26866 posts
Posted on 8/21/25 at 8:12 am to
quote:

What changed?


The new Democrat mantra: Funding cuts kill people.
Posted by Bjorn Cyborg
Member since Sep 2016
33892 posts
Posted on 8/21/25 at 8:16 am to
quote:

Medicaid pays 2.25 the Medicare rate.


Why are there different rates? It seems government payments, if they exist, should be equal.
Posted by TBoy
Kalamazoo
Member since Dec 2007
27428 posts
Posted on 8/21/25 at 8:25 am to
quote:

The new Democrat mantra: Funding cuts kill people.

And this has a lot of truth to it.

One aspect of this that folks seem to be waking up to is that Medicaid and Medicare are not paid to lazy undeserving people. The payments are to health care providers. If the pay scale is cut so that the reimbursement is below the cost for the provider, the facilities close or move or significantly scale back services. When that happens, the medical service becomes unavailable for everyone regardless of insurance.

That is the consequence that has to be avoided. This isn’t a Republican or democrat thing because we all need medical services.
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