Low Medicare Reimbursement Rates Hurt California Hospitals

Online, November 25, 2009 (Newswire.com) - Los Angeles, CA - According to a California Hospital Association survey, cost issues and wage freezes across California were due in part to low reimbursement rates for Medicare and Medi-Cal patients, causing more than half of the state's hospitals to operate at a loss.

Currently, hospitals receive about 78 cents for every dollar they spend on Medicare and Medi-Cal beneficiaries.

Insurance broker Alan Weinstock, http://www.MedicareSupplementPlans.com, attributes the problems faced by California hospitals to the current recession. "Unemployment in this state is sitting at around 11 percent right now, so hospitals will probably see more Medicare and Medi-Cal patients," he said.

If seniors had the appropriate Medicare supplement insurance coverage, also known as Medigap, it would mitigate the losses for hospitals, since the insurance often pays the full cost of hospital and other medical care, filling in the gap left by Medicare reimbursements. Weinstock's website, http://www.MedicareSupplementPlans.com, allows seniors to compare Medigap rates, plans and benefits from several prominent insurance companies.

Barbara Rogoff, 75, of Los Angeles, California, said of Weinstock's agency, "The policy originally recommended to me was exactly as stated and has proved to be perfect for my medical needs."

California is not the only state being affected by the low Medicare reimbursement rates. Iowa hospitals are having similar problems, losing millions of dollars each year because of low payments from both the state and federal government, although according to reports, the quality of patient care has not suffered.

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