It is not uncommon for doctors, hospitals, clinics and other medical professionals to claim they lose money on Medicare and especially Medicaid. Medicaid, the federal-state partnership for low-income Americans is an especially stingy payer for physician services. Medicaid fees vary from state to state and among physician specialties. However, that is a discussion for another day. Medicare is another story. For Instance, Medicare pays about three times the fees that Rhode Island Medicaid pays for primary care consults. Some other states’ Medicaid programs pay closer to what Medicare pays for the same services. This brings me to an article in Kaiser Health News.
The American Hospital Association contends that the federal government reimburses providers significantly less than it costs to care for Medicare recipients. Unlike private insurers, the federal government does not negotiate prices with hospitals. Medicare bases the amount it pays on hospitals’ locations, labor costs, and other factors.