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Private payers compensate for Medicare, Medicaid cuts

Physician Practice Advisor, June 7, 2006

A study commissioned by Seattle-based Premera Blue Cross suggests that employers and consumers may be paying billions of dollars more per year to offset slowed growth in Medicare and Medicaid spending, according to an article by The New York Times.

The study found that in 2004, hospitals in Washington state charged an additional $738 million-14% of their revenue-to private payers to make up for Medicare and Medicaid underpayments. Similarly, physicians received an additional $620 million from private payers, or 12% of their revenue, according to the article.

Click here to access the Premera Blue Cross study. Click here to read The New York Times article.

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