-snip-
Second, if your friend is losing literally a million dollars a year by taking Medicare and Medicaid patients why is he doing it? It seems the choices are one of two things: 1) He's just really nice. 2) You don't know what you're talking about. I've seen this 'reimbursement is below the cost of care' many times from conservatives. It is almost universally from either a very poor understanding of health care that ignores fixed costs and idle staff/equipment opportunity costs or deliberate cherry picking of certain procedures.
JFC you're an arrogant jackass.
When a physician, pharmacy, durable medical supply company (wheelchairs, oxygen etc.) wants to be a Medicare provider they must agree to be 'all in or all out'. Meaning you can't pick and choose which Medicare claims you'll handle.
E.g., I had part ownership of a durable medical company some years ago. Under medicare pricing selling a wheelchair was a loss for us. The Medicare reimbursement rate the the wheelchair was less than our cost. Now, if the customer wanted to rent the wheelchair we made money. After 6 months (a guess because I can longer remember the exact period, and believe me we all knew) the chair was almost paid for a we got the wheelchair back at the end of the period and we could rent it out again. Now the obvious answer is to refuse to sell wheelchairs under Medicare and only rent them. You can't do that; you lose your Medicare credentials . You can't pick and choose.
The physician I referred to above is likewise stuck. If he wants to continue to be able to treat any patients under Medicare he must take the loss on that medicine, at least until such time as it becomes so large he cannot continue to see Medicare patients.
From this we see two things:
1. The federal gov is extremely crappy at price fixing. You shouldn't have one thing that results in a loss and another that results in a nice profit. The profit percentage should be as uniform as possible, a big (-) and a big (+) is not uniform.
2. As you suggest, physician and HC providers will end up simply dumping Medicare. Those on Medicare are already having great difficulty finding a physician to see. If we carry this out to single payer we'll have abig problem.
Fern