SOURCE: American Consumer Institute

American Consumer Institute

March 21, 2011 09:11 ET

American Consumer Institute Finds Medicare Bidding System to Be Faulty; Will Harm Medicare Patients

WASHINGTON, DC--(Marketwire - March 21, 2011) - Professors Fuhr and Blackstone analyze the new Medicare bidding system and conclude it to be a very faulting system, one that will result in lower quality products, fewer services, fewer providers, and less education being provided to patients. This will lead to lower quality of life for the elderly through longer hospital stays, more emergency room visits, and loss of independence if the elderly can no longer stay at home and must go into long term care. An added consequence is higher cost of care as more beneficiaries are shifted from low cost home health care to higher cost facilities. The auction system as presently comprised will lead to government failure and decrease consumer welfare. 

Dr. Erwin A. Blackstone is a professor of Economics at Temple University and a senior research fellow at The American Consumer Institute. Dr. Joseph P. Fuhr Jr. is a professor of Economics at Widener University and a senior research fellow at The American Consumer Institute. To read this ConsumerGram, visit the American Consumer Institute's website at www.theamericanconsumer.org

The American Consumer Institute Center for Citizen Research is a 501(c)(3) nonprofit educational and research institute. For more information, please visit www.theamericanconsumer.org.