How do hospital reimbursements by Medicaid impact employer-based healthcare? Keep reading for highlights from a recent article by Dr. Eric Bricker. And if you’d like more information on employer-based healthcare solutions and/or price transparency tools, HIG is here to help.
I had the honor of being interviewed for an article in Texas CEO Magazine about a month ago. The article entitled, Bending the Benefits Cost Curve: How Compass Professional Health Services Chief Medical Officer Eric Bricker, MD is Disrupting the Status Quo for Employers Healthcare Costs, was just released earlier this week.
Below are some highlights from the article:
- The Cadillac Tax in Obamacare will be a 40% excise tax that is expected to affect up to 60% of employers in 2018 when it goes into effect according to a Towers Watson study
- Hospitals lose money on their Medicare patients-on average 5% per patient and Obamacare calls for hospital reimbursement by Medicare to go down even more.
- Hospitals ‘cross-subsidize’ their Medicare losses by overcharging those with employer-based, private insurance—shifting costs to employer and employees
- The ‘hard line in the sand’ of the Cadillac tax combined with (1) higher healthcare costs for employers accelerated by (2) decreasing Medicare payments is causing employers to adopt cost-containment strategies such a consumerism.
The article goes on to discuss how Compass Professional Health Services supports employers and employees with the price and quality transparency needed to make the culture-shift to a consumer directed health plan.