Take Obama-hospitals deal with grain of salt

The WaPost, with Ms. Health Insurance, Ceci Connolly, writing away trumpets an offer by hospitals of $155 billion in savings over a decade as offering hope to the 47 million, and counting, uninsured Americans.

But, the devilish details say most of this won’t help national healthcare:

Most of the savings — about $100 billion — would come through lower-than-expected Medicare and Medicaid payments to hospitals, said the two industry sources. About $40 billion would be saved by slowly reducing what hospitals get to care for the uninsured, they added. The reductions would probably not begin for several years, after a significant number of people have enrolled in the new insurance programs.

So, only 25 percent of the savings — if they all materialize — will help the uninsured.

I’m not arguing Medicare and Medicaid don’t need the help. Just that this is NOT a big deal for national healthcare. And, it’s not the $200 bil that Team Obama first said that hospitals could save. It’s a take-it-or-leave-it offer.

Beyond that, more than anything else, as with Big PhRMA’s $80 bil offer a week or so ago, this looks like a chance to buy off the idea of public option.