The Betsy Londrigan Health Care Plan: Cut Funding for Hospitals, Doctors and Nurses by Nearly $800 Billion

July 1st, 2020

Londrigan supports Medicare X, which would decrease the health care provider reimbursement rate by nearly $800 billion over a decade, according to the American Hospital Association

Taylorville, IL – Betsy Londrigan, Nancy Pelosi’s candidate for Congress in IL-13, supports a health care plan that would cut funding for hospitals, doctors and nurses and by nearly $800 billion over a 10-year period.

“Advocating for funding cuts to hospitals, doctors and nurses in the middle of a global pandemic sounds like a terrible idea, but it is exactly what Betsy Londrigan is doing. The so-called ‘cost savings’ of the Londrigan-backed Medicare X plan are achieved on the backs of hospitals and health care workers. That’s wrong. In the end, it will hurt patients and front line medical staff like nurses the most. Londrigan should renounce her support for Medicare X and support good legislation, like Rodney Davis’ bipartisan bills to help out-of-work Americans keep their health insurance through COBRA and protect nurses from being furloughed.” – Aaron DeGroot, Davis Campaign Spokesperson

Last fall, after being vague about supporting a specific health care plan, Betsy Londrigan announced her support for Medicare X, which is the Medicare public option plan introduced by Democratic Senators Michael Bennett and Tim Kaine. Essentially, Medicare X would allow Americans to buy into Medicare for their health care coverage.

How exactly does Medicare X achieve health care cost-savings for consumers? It pays hospitals less for the same services, cutting funding for hospitals by hundreds of billions of dollars.

The American Hospital Association (AHA) says Medicare X “would result in the largest ever cut to hospitals” and “could have a significant impact on patient access to care.”

According to research conducted on behalf of the AHA, Medicare X would cut funding for hospitals across the country by nearly $800 billion over a 10-year period, while increasing costs for hospitals at the same time as they take on new patients.

The massive, Londrigan-backed cuts are achieved by the federal government simply reimbursing hospitals at the substantially lower Medicare rate for the same services, relative to reimbursements provided by private insurance coverage like employer-sponsored health care plans. That means major cuts for hospitals, including local hospitals across central Illinois. Cuts to hospitals would put front-line medical staff like nurses out of work and endanger patient access to care.

One study from the Kaiser Family Foundation found that private insurers pay hospitals nearly double Medicare rates for all hospital services, on average.

As recently as February 26, Londrigan reiterated her support for a public option. The Trump Administration declared a public health emergency on January 31. The World Health Organization declared COVID-19 a pandemic on March 11. Londrigan has yet to renounce her support for Medicare X.

Rodney Davis has introduced bipartisan legislation to help out-of-work Americans keep their employer-provided health insurance through COBRA. Rodney also supported $175 billion in historic investments in hospitals and health care providers through the bipartisan CARES Act. Rodney also introduced bipartisan legislation to prevent health care providers who receive COVID-19 funding from furloughing nurses.