Managers of Medicare need help from private insurers to get controll over health care costs
Robert Reischauer, an economist who serves as a trustee for the Medicare and, made that argument today at a hearing on Medicare finances organized by the House Ways and Means health subcommitte.
Reischauer noted that Medicare managers have had trouble making spending-control provisions, such as the sustainable growth rate (SGR) system, actually take effect.
Legislation and regulation have more effect over U.S. Medicare health care promises than market forces do, Reischauer said.
Medicare makes up such a large fraction of the overall health care market, but that does not mean Medicare is free to set its own course with respect to future cost growth, Reischauer said.