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ACA Consolidation Push Sends Costs Skyrocketing
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  • Andrew Allison

    TAI’s thinking on this topic appears to me to be very wooly. Since nobody was covered by ACA before this year, I think we need to look elsewhere for an explanation as to why hospital costs are skyrocketing. ACA is basically an insurance scam, er scheme, designed to transfer taxpayer funds to private insurance companies via subsidies and guaranteed profits while increasing the number of those insured. With all it’s faults, it’s far from clear that ACA, rather than the desire of hospital owners to negotiate better reimbursement rates from insurance companies and of doctors to get out of the insurance administration business, is responsible for the consolidation wave. The increasing costs could be explained by the reduced competition.

    • FriendlyGoat

      I think you’re right about this. It’s fashionable right now to blame ACA for everything under the sun, but costs have always been going up as people and companies in medicine sought to simply make more money. They still are, and they still would be—-with or without ACA.

  • Thom Burnett

    I’ll agree that it’s a bit soon to blame ACA for this. At worst it will be only one of a few reasons for consolidation.

    There’s a general pattern that the more complicated the rules and regulations the more that favors big firms over small ones. Big companies can afford accountants, lawyers, lobbyists etc to deal with the complications. Smaller players are disadvantaged.

    ACA probably added to the advantage of being a big company but even that is hard to say this soon.

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