Medicare and Medicaid Underpayment to Hospitals from 2000-2007

Each year, the American Hospital Association (AHA) collects aggregate information on the payments and costs associated Medicare and Medicaid by U.S. hospitals. Here is the national government underpayment for Medicare and Medicaid from 2000-2007 (in billions) at registered community hospitals (the number of which have only changed slightly during this time period, from 4,915 in 2000 to 4,897 in 2007). Underpayment is the difference between the costs incurred and the reimbursement received for delivering care to patients.

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        Year        

  • 2000 — Medicare: $1.3B; Medicaid: $2.5B; Total: $3.8B                 
  • 2001 — Medicare: $2.3B; Medicaid: $2.0B; Total: $4.3B
  • 2002 — Medicare: $3.3B; Medicaid: $2.3B; Total: $5.5B
  • 2003 — Medicare: $8.1B; Medicaid: $4.9B; Total: $13.0B
  • 2004 — Medicare: $15.0B; Medicaid: $7.1B; Total: $22.1B
  • 2005 — Medicare: $15.5B; Medicaid: $9.8B; Total: $25.3B
  • 2006 — Medicare: $18.6B; Medicaid: $11.3B; Total: $29.9B
  • 2007 — Medicare: $21.5B; Medicaid: $10.4B; Total: $31.9B

Note: Medicare and Medicaid payments include all applicable payment adjustments (Disproportionate Share, Indirect Medical Education, etc.). Payments include both fees for service and managed care payments.

Source: Health Forum, AHA Annual Survey Data, 2000-2007 (www.aha.org/aha/research-and-trends/health-and-hospital-trends/2008.html )

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