>> are you saying private insurance is only for 65+ year olds
No. But private insurance picks up what Medicare doesn't pay in two ways:
- "To help cover Medicare’s cost-sharing requirements, most people on Medicare have some source of coverage that supplements Medicare, including Medigap policies (23%), employer or union-sponsored retiree health plans (35%), and Medicaid for individuals with low-incomes (19%). 4 "
That is, people over 65 who have Medicare -- 75% of them -- have policies to pay the deductible and/or allowable adjustments they can't afford to pay. 75% have to have other insurance.
IN ADDITION, the most a provider can be paid for a Medicare patient is the "Medicare Allowable", which amounts to between 1/2 and 3/4 of what private insurers pay, which provides no profit for the provider. As a result, providers have to collect higher amounts from private insurance, which is the "cost shift". There are hundreds of scholarly articles on this subject. It is, in effect, a subsidy that people like me (those who pay for their own insurance, and companies) pay to insurance companies for the higher charges they are required to pay.
Okay, that's it. You're on your own. |
