Sunday, September 30, 2018

PROP 8

There are nearly 600 Chronic Dialysis Clinics (CDCs) in California. These facilities make roughly $3 Billion annually from patients on Medicare, Medi-Cal, and private insurance. The rates charged to private insurers is typically multiple times what government programs pay for dialysis.

Prop 8 would set a revenue cap for CDCs, above which the clinics would be required to give the money, with interest, back to private payers. That cap would be set at 115% of "direct patient care services costs". CDC owners would have to submit annual reports to the state, outlining their costs and whether their revenue exceeds those costs.

And this is where the measure kind of breaks down. The Legislative Analyst, in the summary, admits, "CDC owner/operators would likely respond to the measure by adjusting their operations in ways that limit... the effect of the rebate requirement". The easiest way they could do this is by increasing wages for non-managerial staff. You see, the more money they spend on employees providing direct care, the more revenue the clinic makes under that 115% cap.

Maybe this is why Prop 8 was put on the ballot by Healthcare Workers Unions? It's opposed, not surprisingly by CDCs.

This prop starts out reading like a blow against greedy, Big Medicine. But scratch the surface and it's clear there's nothing in it intended to help patients. In fact, it could end up limiting access, as some clinics might scale back or close if they can't get the profits they want.

Your Political Friend is voting NO.

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