05 Nov 2020
Posted in Healthcare
Industry experts believe Medicare for all is best healthcare plan outcome of US elections
The US currently makes up 38.4% of the global medical device market, according to leading data and analytivs company GlobalData – signifying that adopting Medicare for all will therefore cause a major shift in the industry.
When asked ‘What is the best healthcare plan outcome of the US presidential election in November?’, 25% of respondents to a survey by GlobalData noted support for Medicare for all, 23% were happy for healthcare plans to stay the same, 19% preferred public option, 18% were in favour of repealing the affordable care act (ACA), and 15% believed the ACA should be strengthened.
Aliyah Farouk, Senior Medical Device Analyst at GlobalData, comments: “The main benefit of Medicare for all is the reduction of costs. The Democratic party plans to include larger corporations in competitive tendering with Medicare in order to decrease treatment prices. Competitive tendering may disrupt the medical device industry, leading to new market entrants with companies that provide lower prices benefiting from the policy.”
As a result, larger medical device companies will exit the market, as was witnessed in 2013 when Medicare reimbursement for diabetes strips were cut by 70%. Additionally, providers that serve higher proportions of privately insured patients could lose revenue while those that serve predominantly Medicaid, Medicare, or uninsured patients are more likely to gain revenue.
Farouk continues: “Conversely, a repeal of the ACA will favor private insurance, thereby promoting price transparency and allowing patients to price shop for their procedures. This is expected to increase procedure volumes especially for more rudimentary medical devices such as diagnostic imaging. However, as many low-income patients are precluded from having access to insurance, overall healthcare expenditure may decrease under this policy.
“Healthcare reform has been an ongoing feature of US politics. Both the Democratic and Republican parties promise an increased public access to healthcare. Although wide access will increase the demand for medical devices, companies are also expected to face competitive pricing pressures.”