By Bobby Jindal & Charlie Katebi

As healthcare costs continue to squeeze family budgets, Congress remains locked in debate over extending enhanced COVID-era Obamacare insurance company subsidies that artificially lower premiums for some consumers. Rather than wait for band-aid proposals from Congress, President Donald Trump is taking decisive action to deliver real reforms that lower costs for all Americans — not just the ones on Obamacare.

Currently, seniors pay significantly more for services when visiting clinics owned by a hospital system, rather than an office that is independently owned and operated by a physician. Medicare Part B, which covers outpatient care, pays 170% higher prices for procedures, 30% higher prices for imaging services, and 20% higher prices for tests delivered in a hospital-owned facility compared to independently owned offices. Since seniors with Part B must pay a 20% coinsurance rate for every service they receive, these payment differences can add hundreds or thousands of dollars to a senior’s annual medical expenses. For example, a patient who visits a physician’s office to receive a spinal injection would pay $51. However, if the same patient visited a hospital-owned office for the exact same service, they would pay $148.

These preferential payment rates have encouraged large hospital systems to acquire thousands of physician offices. This influx has inflated the cost of care for seniors and taxpayers and has created healthcare monopolies. Between 2004 and 2024, the cost of healthcare in Medicare’s Part B rose 281%, increasing from $135 billion to $516 billion. Seniors have borne these rising costs through higher premiums and out-of-pocket fees. Industry consolidation has also led to higher premiums for patients with commercial insurance.

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