The difference between the growth in Medicare fees and the growth in Medicare spending is, of course, the growth in the volume of services sold, so to speak, to Medicare.
The chart that accompanies his post shows that Medicare spending has soared, although reimbursement rates for doctors have not. I wonder how he will reconcile this with his most famous article.
READER COMMENTS
Hyena
Dec 18 2010 at 8:13pm
By pointing out that the earlier article is about market provision generally and the later about a system with per unit cost control.
Jon
Dec 19 2010 at 1:00am
The conclusion then is that it isn’t the growth rate that’s the problem. Its the base-level of payments that’s outrageously high. Therefore, the growth-rate should be negative not even slightly positive.
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