SEIU-United Healthcare Workers says its proposed measures represent the nation's most wide-ranging and aggressive ballot efforts to control hospital costs. They include one measure that would prohibit hospitals from charging more than 25 percent above the actual cost of providing patient care, and another that would bar the executives of not-for-profit hospitals from earning more than $450,000 a year.Cost Plus use to be the predominant way insurance was administered and the basis of many provider reimbursement schemes. They all end the same way;
- Massive Fraud inflating cost basis
- Legal inflation of cost basis
Why would SEIU prefer this over other reference pricing schemes? It doesn't hinder the pay of their members. Hospitals can pay bloated salaries to employees or over-staff egregiously and actually be rewarded for it.