| Many public advocacy groups, staff at the state Department of Health Services (DHS) and state
legislators have asked the WDA why dentists do not treat all people in
need of dental care and cost-shift the losses on to private sector patients, as
is done in medicine.
The WDA is the voice
of the profession in the state of Wisconsin representing approximately 2,900 or more than 80 percent of all licensed dentists in
Wisconsin. As such, we are the most appropriate entity
to provide an explanation for why dentists don’t cost-shift the burdens of an
under-funded state Medicaid program on to private pay patients.
1. DENTISTRY IS DEPENDENT ON THE DISCRETIONARY EXPENDITURES OF PATIENTS.
Unless in acute pain, the care being sought by most dental patients is not what
patients would consider "urgent" or life-threatening. Many dental
patients don't have dental insurance so their dental care expenditures
are truly out-of-pocket. Those who do have dental insurance often pay co-pays
or deductibles and are usually very aware of the actual costs of the procedures
being performed.
This is not true in the medical model: patients perceive
medical care as more urgent and life-threatening in nature and medical patients
are often not the payers for the care they receive (their employer or
their insurance plan is). It is rare for a patient to know the actual charges applied to his plan or the costs of the
services performed.
If dentists DID
cost-shift the under-funded Medicaid program on to the backs of the private
sector patients, the cost of dental care would increase to such a level that
private pay patients would have significant trouble justifying the
expenditure of their hard-earned discretionary dollars on services unless the
services were of a more urgent nature.
This would lead to:
- The delay of
routine restorative and preventive dental care for the vast majority of private
sector patients
- A decrease in the number of private sector patients to
whom the costs for the under-funded Medicaid program could be shifted.
This
would result in a negative spiraling effect where more private pay
patients (a high percentage of which are elderly patients) would delay dental care
in order to avoid the cost-shifting and eventually, the system would collapse
because it could not successfully sustain itself if dependent only on the
payments from the private pay patients in need of emergency dental services
and/or the private pay patients who have unlimited discretionary incomes.
The medical model includes the prevalence of health
insurance payment/coverage (which disconnects most purchasers from the cost of
the health care).
This puts medicine and dentistry in very different situations
as viewed by private pay patients. Private
pay dental patients would notice more quickly and would defer care more
frequently if they were faced with the burdens of absorbing the cost-shifting
that would be necessary to sustain the under-funded dental Medicaid program in Wisconsin. The
burdens created by cost-shifting in the medical model have been getting increased attention and these burdens are not viewed positively by most who are
involved in the discussions. Expanding the
cost-shifting into dentistry will worsen, not improve, the current
situation.
2. DENTISTRY BASICALLY REMAINS A PROFESSION OF SMALL BUSINESSES, WHICH MAKES IT MORE DIFFICULT FOR THE OWNER TO CALCULATE THE COST-SHIFTING THAT COULD BE ABSORBED BY THE PRIVATE SECTOR WITHOUT GOING UNDER.
There is no comprehensive
system of “free care” in Wisconsin - in the medical model, a “hidden tax” is
implemented by the hospitals and clinics in their attempt to collect the costs
of absorbing enrollees from the state’s under-funded Medicaid program. This “hidden tax” essentially increases the
health care insurance costs for the rest of us (including dentists who are
largely self-employed and small business owners). This will eventually decrease
the pool of private pay patients below the threshold numbers that are necessary
in order to sustain the existence of the state’s under-funded programs. In the
dental model, the Medicaid patients experience a lack of access because dentists
place tighter limits on their participation in the state’s under-funded program
or they choose not to participate at all and pick other (less-regulated) ways to provide charity care to patients in need.
3. IN THE LARGER PICTURE, THE GOVERNMENT HAS DECIDED THE PROVISION OF HEALTH CARE (INCLUDING DENTAL) TO THOSE OF LOW-INCOME IS A WORTHY GOAL.
In
the meantime, that same government has chosen to pay the providers of that care
substantially less than the costs of services being provided.
Instead of openly paying providers for the
costs of these services on an up-front basis, the government has depended on
providers to either absorb the loss (which continues to become more and more difficult
as rates get lower and lower) or to do the government’s job of taxing
individuals to cover the costs by cost-shifting the losses to the private
sector patients and/or their insurance plans.
The dental community believes
the system would operate more fairly and provide better access to those to whom the government has promised care if the government would
simply stand by its original promise by properly funding (on the front end) the
health care programs that those in government have established. It should
not be the job of health care providers to implement a government tax in order
to fulfill the promises made by the government or the society as a whole. Providing quality care to the state’s
enrollees is the provider’s responsibility; finding an appropriate mechanism to
pay for the costs of those services is the government’s/society’s
responsibility.
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