Reversing its decision last month to divide the costs 50-50, the Health Services Cost Review Commission will make payors cover 70 percent of the costs, involving a rate increase of 0.75 percent, while hospitals pay the remainder out of their operating budgets.
Hospitals protested the original 50-50 formula for the Medicaid expenses, which have been shifted from other state funding sources so that the state budget could be balanced.
Read the Baltimore Sun’s report on hospital rates.