You couldn’t design a better stress test for the healthcare system than the COVID-19 pandemic. And on some fundamental levels, the system failed. Editorial writer jcahealey on how we fix that.
Beyond that, subsidies treat the symptoms of high healthcare costs instead of the problem itself. A better, more sustainable answer is to confront the forces pushing up healthcare spending, most notably the lack of competition. Consolidation among hospitals and some medical groups and a shortage of healthcare professionals has given too many providers the power to set high prices in too many regions. The state needs tools to counter that excessive power.
It would also take some doing — and no small amount of dollars — to make Medi-Cal an attractive alternative to employer-sponsored insurance and the private plans offered through Covered California. For starters, the state may have to bump up the rock-bottom fees it pays for care in order to attract more doctors, while also finding a way to let workers shift their employer’s financial contribution from the company’s group policy into the state’s plan.
The catch, however, is that political leaders would need to show the courage of the office’s convictions. And historically, elected officials have wilted in the face of opposition from the hospitals, drugmakers and healthcare companies that are major employers in their districts.