Third Way Statement on Senate Framework to Lower Hospital Prices for Seniors

Washington—Third Way issued the following statement from Gabe Horwitz, Senior Vice President for the Economic Program:

“If lawmakers are going to make durable progress on lowering health care costs, they need to take an expansive view of issues throughout the health care system. That’s why we applaud Senators Maggie Hassan (D-NH) and Bill Cassidy (R-LA) for focusing on one key area for reform: high hospital prices.

“Right now, seniors are paying different prices for the same services based solely on where they get care. For example, cancer patients receiving radiation therapy are paying $377 in a hospital-owned clinic but $155 in a doctor’s office not owned by a hospital. A simple chest X-ray costs seniors nearly four times as much at a hospital clinic than a doctor’s office.

“The Hassan-Cassidy framework takes on this issue by ensuring patients in Medicare are paying the same price for the same service. Their approach would result in tremendous savings for patients. Seniors would pay less in out-of-pocket costs and premiums, and the financial security of the Medicare program would improve. The proposal would also reinvest some of the savings in hospitals serving areas with high needs, such as rural hospitals and those serving low-income populations. On top of the patient benefits, this would create equity between ‘have- and have-not’ hospitals.

“We are thrilled to see Democrats and Republicans working together for the American people, and Third Way is a proud supporter of the framework. In the next Congress, we encourage the Senate Finance Committee to act swiftly to pass these reforms. Earlier this year, Third Way led a coalition letter with a diverse group of thought leaders, patient advocates, employers, and health care providers to call on the Senate Finance to support a similar approach, and we remain committed to pushing for legislation that would lower health care costs for patients.”