Yesterday, Everett Clinic CEO Richard Cooper wrote this letter to Representative Jay Inslee. The letter also went to Senators Patty Murray and Maria Cantwell and Representative Rick Larsen.

Dear Representative Inslee:

We are writing to express our opposition to the “Public Option” proposal that is currently being considered in the U.S. House of Representatives. We are very concerned that the “Public Option” would pay the same rates as Medicare. Our experience is that Medicare rates are not sufficient to cover the costs of providing care.

As you know, Medicare pays less in Washington than it pays in other states. Providers in our state are penalized because we deliver care more efficiently.

The Everett Clinic cares for more than 28,000 Medicare patients and we just completed an independent review of our Medicare finances. Under the original Medicare fee-for-service model, we lose $464 per patient each year. This year we are projecting a loss of approximately $11.7 million treating Medicare patients. With anticipated growth in the Medicare population, it is estimated that the loss will grow to $70 million over the next five years. If these same rates are also applied to a segment of our private insurance customers, it will have a devastating effect on our bottom line and our ability to care for patients.

Under the current system, the commercial insurers in our state subsidize Medicare payments by up to 40 percent. This subsidy is essential for us continue to care for our Medicare patients. If in addition payments for private pay patients are lowered to the level currently paid for Medicare patients in Washington, the entire healthcare financing system in our state will be permanently damaged. Patients will find it difficult to access care as providers struggle to keep their doors open.

As you are aware, The Everett Clinic, along with others in our area, have received national recognition for providing high-quality, low-cost care. We believe there are ways to improve healthcare that do not involve a radical overhaul of the entire healthcare system. Instead, there should be a concerted effort to implement proven measures that will reduce costs while improving care.

Thank you for the opportunity to share our views. We look forward to discussing this issue further at your earliest convenience.




Richard H. Cooper
Chief Executive Officer