In the article, Mr. Payne said that although there are advantages and disadvantages to a federal program, a public plan could hurt small hospitals if its reimbursements mirrored those of Medicare and Medicaid.
Medicare and Medicaid reimbursements do not cover the costs of providing most hospital services, said Mr. Payne. Small hospitals, like Athens-Limestone, that see a large percentage of government-insured and uninsured patients rely on private insurance reimbursements to provide “equitable reimbursement,” according to the article.
Mr. Payne worries that a public plan would be favored by individuals, causing them to drop private insurance. If the public plan reimbursed similarly to Medicare and Medicaid, some small hospitals may not be able to remain financially viable.
Read The News Courier’s article with hospital CEO Cary Payne on health reform.
