Impact of State Hospital Payment Ratesetting Systems

摘要

The report assessed each system's impact on the Medicare and Medicaid programs as well as on payments and premiums under private health insurance plans and tax expenditures. Major findings were: (1) state all-pay systems played an important role in controlling Medicare program hospital payments prior to the advent of the prospective payment system (PPS) for Medicare. The favorable performance of PPS, since its introduction, has reduced the potential benefit from such systems for the Medicaid program; (2) all-payer systems remain attractive alternatives for the Medicaid program.