Working Paper: An Illustration of the Impact on Hospitals in California of a Government-Run Health Plan that Pays Medicare Fee-for-Service Rates

One of the most controversial issues in the health care reform debate is the proposal to establish a government-run or government-sponsored health plan to compete with private health insurance plans. The implications of such a change have not been fully addressed, and much of the impact would depend on the design and parameters of the plan. Many are envisioning a government-run plan designed like Medicare’s traditional fee-for-service (FFS) program; therefore, this paper focuses on the first-order effects of a government-run plan that would reimburse hospitals at Medicare FFS payment rates.

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Report Only (PDF - 436 KB)
Appendix A: Comparable vs. Non-Comparable Hospitals (PDF - 355 KB)
Appendix B: Fifty Percent of Commercial Business Paid at Medicare FFS Rates (PDF - 1 MB)
Appendix C: One Hundred Percent of Commercial Business Paid at Medicare FFS Rates (PDF - 1 MB)
Appendix D: Fifty Percent of Commercial Business Paid at Medicare FFS Rates Plus 10 Percent (PDF - 1 MB)
Appendix E: One Hundred Percent of Commercial Business Paid at Medicare FFS Rates Plus 10 Percent (PDF - 1 MB)