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Medical Test Cost Depends on Where You Get It

A little known fact about healthcare costs – a medical test administered at your doctor’s office facility costs less than the same test administered at your local hospital. That’s because Medicare payments for those services aren’t “site-neutral.” In other words, Medicare is willing to reimburse a higher amount for test procedures performed in a hospital, the net result being that Medicare’s national cost is substantially more than it needs to be, according to this Forbes article by healthcare expert Sally Pipes. According to the author, “Paying hospitals and doctors the same amount for equivalent services would save Medicare beneficiaries billions in premium costs—and save taxpayers even more.” The article goes on to explain how Medicare adopting a “site-neutral” reimbursement policy would mean that national healthcare expenditures could fall by about $672 billion. Click here to read more.

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