Analysis: North Dakota Hospitals Would Lose up to $150M With a Public Option

An analysis by Blue Cross Blue Shield of North Dakota finds that hospitals in the state could lose $23 million to $150 million in reimbursements if a public option were included in national health reform, according to a report by the Bismarck Tribune.

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The amount of the loss would depend on how many people switched to the public option from private insurance, including the Blues plan.

The public option has been losing favor in Washington, but if it were adopted, its reimbursements would be tied to Medicare levels, which in North Dakota are well below the national norm.

“We are in the top 10 [states] for quality of health care in the country, based on standards set by [CMS],” said Jerry Jurena, president of the North Dakota Healthcare Association, but “when it comes to [Medicare] reimbursement, we are in the bottom three.”

A public option would just exacerbate losses, Mr. Jurena added, noting that “you take $23 million out and hospitals are operating in the red.”

Read the Bismarck Tribune’s report on hospital losses in the public option.

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