Senator Kennedy Unveils Bill to Slash Medicare Costs and End Hospital Overbilling for Outpatient Care

Senator John Kennedy (R-La.) has introduced the Same Care, Lower Cost Act, a bipartisan initiative aimed at reforming Medicare's payment structure to promote fairness and reduce healthcare costs. The bill addresses the current system where hospitals can charge higher rates for outpatient services compared to independent clinics, even when the quality of care is equivalent.

🏛️ What the Bill Proposes

The Same Care, Lower Cost Act seeks to implement "site-neutral" payments within Medicare. This means that Medicare would reimburse the same amount for specific outpatient services, regardless of whether they're performed in a hospital outpatient department or a physician's office. The legislation directs the Secretary of Health and Human Services to apply site-neutral payments to 66 ambulatory payment classifications (APCs) identified by the Medicare Payment Advisory Commission (MedPAC), with the authority to include additional APCs as appropriate.

💰 Potential Savings

According to estimates, adopting site-neutral payments could save the Medicare program and taxpayers approximately $157 billion over the next decade. Beneficiaries could also see savings ranging from $94 to $134 billion in reduced premiums and out-of-pocket costs during the same period.

📣 Support and Opposition

The bill has garnered support from various organizations, including Better Solutions for Healthcare, AMAC Action, Free2Care, the Committee for a Responsible Federal Budget, Americans for Prosperity, the Libre Initiative, and Concerned Veterans for America. These groups advocate for the bill's potential to lower healthcare costs and increase transparency.

However, some hospital associations express concern that site-neutral payments could lead to significant revenue reductions for hospitals, potentially impacting their ability to provide services, especially in rural and underserved areas.