Offering a government insurance program reimbursing at Medicare rates as a public option on the health insurance exchanges could place as many as 55% of rural hospitals, or 1,037 hospitals across 46 states, at high risk of closure, according to an analysis released today by Navigant Consulting Inc. The authors estimate that 28% of rural hospitals would be at high risk of closure if only uninsured and current individual market participants shifted to the public option, and that more than half of rural hospitals would face high risk of closure if employers shifted 25% to 55% of their covered workers from commercial coverage to the public option. “To keep hospitals whole from the financial consequences of any of these scenarios, Medicare would have to increase hospital payment levels for a public option between 40% and 60% above present Medicare rates, costing between $4 billion and $25 billion annually (depending on the severity of the employer shift),” they said.

Related News Articles

Headline
The Government Accountability Office today named three new members to the Medicare Payment Advisory Commission through April 2023. They are: Wayne…
Headline
The Health Resources and Services Administration, part of the Department of Health and Human Services, today provided $225 million to rural health clinics for…
Headline
Sens. Lisa Murkowski, R-Alaska, Michael Bennett, D-Colo., and Dan Sullivan, R-Alaska, today introduced AHA-supported legislation (S. 3615) that would extend…
Insights and Analysis
Three hundred people tuned into AHA’s April 14 webinar, Experience from the Front Lines: Managing COVID-19 in Rural Communities, showing how large the appetite…
Headline
More than half of U.S. adults aged 70 and older have experienced a disruption in their medical care during the first month of social distancing for COVID-19,…
Headline
The AHA and other national hospital organizations today urged the Department of Health and Human Services and Centers for Medicare & Medicaid Services to…