Study Questions Insurance ‘Cost-Shifting’ Theory
Contrary to the popular health insurance "cost-shifting" theory, reducing Medicare payment rates for hospital inpatient care does not accelerate growth in private insurers' costs, according to a study published in the journal Health Affairs. Researchers found that when Medicare payment rates were reduced by 10% from 1995 to 2009, private insurance payment rates dropped by 3% to 8%Â during that time.
- "Study: Cuts to Medicare Trim Costs to Insurers" (Smith, Politico, 5/7).