If health insurers used Medicare rates, spending would plummet
Posted On: Mar. 2, 2021 9:57 AM CSTIf 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.