Why Does the Government Pay More for the Same Care?

The cartoon above says it all: the federal government continues to overpay for healthcare services simply because of where the care is delivered. Under current law, Medicare pays far more for a procedure done at a hospital outpatient facility than it does for the exact same service provided by an independent physician—sometimes up to 80% more.

This is not just wasteful. It’s unfair to patients, taxpayers, and independent doctors who provide quality care at a fraction of the cost.

Site-neutral payment reform would fix this broken system by ensuring Medicare pays the same rate regardless of the location. According to the Congressional Budget Office, adopting site-neutral payments could save $14 billion annually. These savings could help preserve Medicare, reduce the deficit, and lower costs for patients—especially seniors.

We’ve put together a one-pager explaining why Congress should act now.

📄 Download the PDF