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If health insurers used Medicare rates, spending would plummet


If private health insurers reimbursed using Medicare rates, health spending for people with private insurance would plummet by an estimated $352 billion in 2021, a 41% drop from the estimated $859 billion that insurers are expected to pay this year, Kaiser Family Foundation reports citing its own analysis. The resulting savings would be spread among employers ($194 billion) and employees ($116 billion), and the non-group market ($42 billion), assuming proportional savings throughout the private insurance market.

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