Debt-Ceiling Law Could Reduce Medicare Payments to Hospitals by $1.4M Per Year

Over the next 10 years, individual hospitals could see Medicare payments reduced by an estimated $1.1 million to $1.4 million per year due to the recent debt-ceiling legislation, according to a news release from MedeAnalytics, a healthcare provider management solutions firm.

Ken Perez, senior vice president of marketing and director of MedeAnalytics' healthcare policy team, said if one assumes Medicare will take its share of the budget cuts, it would lead to $150 billion to $200 billion in Medicare cuts in the next 10 years.

Mr. Perez said that if providers assume 100 percent of the cuts will be covered by reduced reimbursements to providers and that the Inpatient Prospective Payment System would bear its proportional share of the cuts, IPPS would be cut by an estimated $50 billion to $65 billion over the 10 years. This is a possible scenario, given how reduced reimbursements are more politically popular than reducing Medicare benefits.

"There is a lot of speculation right now about the financial fallout from this debt-ceiling legislation," he said in the release.

Read the release on the debt-ceiling legislation and Medicare payments.

Related Articles on Debt-Ceiling Legislation:

Congressional Leaders Reach Debt Deal, Medicare Providers Face Possible 2% Cut
Gang of Six Deficit Plan Gains Support; Includes $500B Cut to Medicare, Medicaid and Other Federal Programs
House Defeats Debt Limit Increase, Signaling Medicare Cuts May be on the Way

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