Medicare doesn't *negotiate* rates, it *dictates* them, and as we can see in this reform, political pressure can be used to arbitrarily lower those reimbursement rates.
A number of points all of which I've made more than once before but obviously for no apparent purpose.
First off reimbursement rates cannot be lowered *arbitrarily*. There still must be some correspondence to reality or as you and all the conservatives are quick to point out no healthcare supplier can long stay in business if total income does not at least exceed slightly total expenditures. It's certainly possible that a limited number of procedures could be priced below market value as long as in the end there is some reasonable level of profit to be made.
Of course as I've also repeatedly said, finding the proper point can be a bit of hit or miss but as long as there are reasonable feedback mechanisms then the proper point will be found before complete disaster happens. I'm sure that doctors, hospitals, clinics and diagnostic services companies will be quick to let the public and government know about pending problems. I doubt we will have to discover there's a problem only after 1 million doctors have left the field.
Secondly as we all know there's a lot more to the healthcare issue than simply the health insurance industry. Tying the public option to Medicare reimbursement rates gets the best price possible for the public option and puts the most downward pressure on the aforementioned doctors, hospitals, clinics and diagnostic services companies that would otherwise be unaffected by a simple change in how health insurance operates.
Even with dictated prices, Medicare is losing $200 billion this year - the difference between what the taxes and premiums collect and the cost of care it provides comes out of general revenue and is just rolled into the deficit.
Yet another point I've repeatedly debunked. There are a large number of reasons that Medicare is losing money. One part of this issue is the boondoggle of Medicare Part D which is a $500 billion dollar cost that was in essence Bush's gift to the Pharmacutical industry. This is of course the talking point that the right uses to say that the plan cuts $500 billion of seniors benefits which is totally bogus (as Sarah Palin would say).
Also Medicare currently subsidizes hospitals for the shortfall in revenue due to patients that cannot pay one way or another. Once everyone is covered with insurance these subsidies can be eliminated.
Now expand that to cover the whole population and see what the deficit ends up being.
No one is proposing anything like this. First off as I mentioned the estimate is the public option as it's now constituted would only cover 2% of the US population by 2019. This is a long way from the *whole* population. Also this 2% is sure to be reduced even further in the senate with either a state opt-out or put off entirely by a trigger. Finally the payments that seniors make are not intended to come close to covering Medicare's effective insurance premium cost. The public option would have people pay a premium that is sufficient to cover all outlays. Therefore increases in public option subscribers do not increase any budget shortfall.
In reality, insurance is the lesser of the two problems in healthcare today, and this reform isn't even giving lip service to addressing the bigger issue - cost of care. Insurance reform may even out how much each person pays, but the total isn't going to go down until the cost issues are addressed.
I think it's closer to 4 problems if you want to get specific. PhaRMA, medical malpractice awards, doctors, hospitals, clinics and diagnostic services company costs along with the insurance industry *all* need to be addressed sooner or later but we simply will *never* do anything if we require that *everything* needs to be done at the same time.
We've essentially watered down health insurance reform to the point of uselessness. Imagine the fight if we tried to do everything at once. This is why healthcare reform under Clinton failed. But like I said we can at least tie the public option to Medicare reimbursment rates which would put downward pressure on a lot of these costs.
I hate to repeat myself but it seems I have no choice as you simply continue to repeat the same flawed arguments over and over again.