This is the first of a 3 part series by Dr. Moeller, the infamous Doctor on the Frontlines. In this series he explores ways in which our healthcare system is failing, and how it can be improved from the perspective of those who live and breathe healthcare every day. . . doctors. Click the links to read Part 2 and Part 3.
I want every person in America to have access to quality health care all at a reasonable price because our citizens deserve this. Unfortunately, universal access to care at a reasonable price cannot materialize unless lawmakers look to doctors on the front lines of care for specific input. We as doctors know in many ways why costs are high and why the public is unfortunately misinformed about how it all works. But we need a representative sample of practicing doctors in Congress discussing these issues so that these “insider” insights can be applied to our current laws.
In this series of posts I will outline 3 central ideas that would lead to better and more affordable care.
1. Costs Need to Be Simple and Transparent.
The first idea involves making costs and reimbursement more simplified and transparent. These changes would help clarify misconceptions about doctor’s pay. Leaders need to stop attacking doctors for how much they earn because they do not really know how it works. In all other professions, one gets paid what the bill says. If a handyman comes in to fix your sink and charges $80, you pay him $80. If you seek a lawyer, and he says he charges $250/hour and he works 4 hours for you, you owe him $1000.
Unfortunately, the medical billing is unique, confusing, and wrong. The charges (bills) that patients see in the mail are not what doctors get paid. These are inflated numbers derived from contracts between hospitals or groups and insurance companies. A recent New York Times article headlines read “As Hospital Prices Soar, a Stitch Costs $500.” Sadly, these inflated numbers have nothing to do with what the doctor gets paid. In fact, those bills do not go to the doctor at all, but rather to the hospital.
When a hospital or doctor submits a charge (bill), the insurance companies or Medicare/Medicaid, depending on the patient’s insurance, utilize a fee schedule. This schedule consists of thousands of codes that give dollar amounts for individual procedures or clinic visits. Each code has a dollar figure to determine how much to reimburse that doctor. This is called a “Medicare fee schedule” and insurance companies will pay a certain percentage of the fee based on Medicare. This can range from 80% to 180% of Medicare depending on the insurance carrier. Continue reading “How to Fix Healthcare, From a Doctor on the Frontlines: Part 1.”