Vermont pauses Medicaid reimbursement changes

Vermont officials will not move forward with changes to Medicaid reimbursements for the state's hospitals — for now, according to a VTDigger report.

The state will "hit pause" on the decision, which would have reduced Medicaid reimbursements for seven hospitals and increased reimbursements for the others beginning March 1, Steven Costantino, commissioner of the Department of Vermont Health Access, said, according to the report.

With the changes, Vermont's seven largest hospitals, including University of Vermont Medical Center in Burlington and Rutland (Vt.) Regional Medical Center, would be paid about 75 percent of what Medicare pays, rather than the previous 87 percent, according to VTDigger. For small hospitals in rural areas, it would be about 112 percent instead of 93 percent.

Mr. Costantino said in the report hospitals billed Vermont about $20 million more last year than in 2014, and the rate changes were necessary this year to make up the difference.

He said the changes have been halted to explore alternatives to address the reimbursement issues.


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