By Amelia Hamilton
Whether or not to extend the enhanced Obamacare subsidies has dominated the healthcare policy conversation in Washington. These subsidies were a key point of contention in the recent government shutdown, and, after a 45-day closure, the government reopened in the middle of November with no resolution. Instead, Democrats and Republicans agreed to hold a vote in December on extending the subsidies. (The Senate rejected the extension, but the House recently voted for the extension.)
SEE: Four Republicans Jump Ship, Side With Jeffries on Extending Obamacare Subsidies
But while Congress battles over the extension, the fundamental issue is being overlooked. With or without extended subsidies, healthcare costs are too high.
Officially called the Enhanced Premium Tax Credits, these subsidies from the federal government are intended to help pay premiums and out-of-pocket costs for those receiving healthcare through the Affordable Care Act (ACA) exchange marketplaces. These tax credits were intended to be temporary and have already been extended.
People wouldn’t feel so threatened by the loss of these subsidies if the cost of healthcare were within their budget. Unfortunately, while the average American family worries about medical bills, “non-profit” hospitals are spending jaw-dropping amounts of money on luxuries. Healthcare systems like Christus, Mercy, Montefiore, Ochsner, and SSM Health flew executives first class or even by private jet on the company dime. In some instances, the company even paid for their travel companion. Their generous salaries certainly could have covered the latter at the very least.
They’re also investing in some bizarre, unrelated business ventures. Take Maine Medical, for example. As part of an expansion plan, the large hospital system acquired a building containing a pizza parlor. That wouldn’t be so odd, except for the fact that they plan to keep the ground floor as a pizza parlor and even help the current owners find a new operator so they can retire.
Not to be outdone, the Ochsner Clinic Foundation in Louisiana is now running a hotel. And I really don’t know what Mercy Health is doing in Antarctica, but for the past few years, they’ve spent millions there annually.
Elsewhere, Montefiore Einstein Hospital in the Bronx brought in Paul Giamatti to tell the story of a lung transplant patient in a splashy video directed by Academy Award-winning director Alexander Payne. In fact, Montefiore spends millions on creative agency Alto every year for these celebrity-driven, high-end campaigns.
Who do you think ends up paying those bills? The insurers aren’t able to simply absorb those costs.
To pay for famous actors, delicious pizza, and Antarctic mysteries, healthcare systems have shown an eager willingness to charge patients more. For their part, insurers are not willing to just say “yes” to everything. Around the country, healthcare systems are asking for increases in reimbursement rates that far exceed inflation and would cost employers, families, government programs, and patients hundreds of millions of dollars.
From Oregon to Nebraska to Connecticut to Colorado and Florida, examples abound of hospital systems prioritizing ways to charge more for services as opposed to tightening their often already-supersized belts.
The subsidies debate is important, but even more important is that healthcare watchdogs keep their eye on the ball. There are far bigger problems where healthcare costs are concerned, and they’re only getting worse.
Amelia Hamilton is a writer and communications professional from Michigan with more than a decade of experience in messaging to promote liberty. Amelia has undergraduate and master’s degrees in both English and 18th-century history from the University of St. Andrews in Scotland.
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