By Bobby Jindal and Charlie Katebi

Medicare pays hospital-owned clinics up to 670 percent more than independent physician offices for the exact same care. In early July, the Department of Health and Human Services (HHS) proposed ending that markup for common imaging services without contrast, including X-rays, MRIs and ultrasounds, by paying certain hospital-owned clinics the same rates as independent physician offices. The reform would lower costs for America’s seniors while saving beneficiaries and taxpayers $260 million in 2027 and $7.2 billion over the next 10 years.

Seniors and taxpayers should cheer for this proposal and demand Washington go even further.

Under Medicare’s current rules, the same medical service can cost dramatically more simply because it is provided in a hospital-owned clinic. In that setting, Medicare sends two payments: a payment to the doctor and a facility fee to the hospital that owns the practice. As a result, Medicare can pay hospital-owned facilities 43 percent to 670 percent more than independent practices for identical services.

Seniors pay for this markup directly, as Medicare beneficiaries pay a 20 percent coinsurance for outpatient care. In 2023, for example, an epidural injection would cost a senior $148.17 in coinsurance at a hospital-owned clinic, compared with just $51.17 at a freestanding physician’s office.

Finish reading at Newsweek.com