Medicaid payments go under the knife

From USA TODAY:

To curb rising Medicaid costs, about a dozen states are starting a new budget year by reducing payments to doctors, hospitals and other health care providers that treat the poor…

“Further depressing payment rates can only worsen the situation,” says Sara Rosenbaum, chair of the health policy department at George Washington University. She says some states cutting rates — such as South Carolina— already have severe Medicaid physician shortages.

Insurers and employers have their own concerns about the payment cuts. They say trimming the rates will prompt providers to raise their prices for patients who have private insurance…

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