Task Force Finds Massachusetts Medicaid Reimbursements Low

According to a report presented Sept. 17 to the Governor's Blue Ribbon Task Force, Massachusetts' Medicaid payments to hospitals should be increased "now," the Boston Herald reports. Currently, the state reimburses Medicaid services at a rate of 71 cents on the dollar. However, the report found that an inflation-based increase alone would raise reimbursements to 80 cents on the dollar. In addition to increasing reimbursements, the report recommended that the state investigate ways reduce the cost of health care. For example, the state could save money by shifting services from teaching hospitals to lower-cost community hospitals, health centers and nursing homes. Also, the report advocated the creation on an independent commission to "monitor" the finances of the health care industry. While the commission would not have "regulatory authority," it would remain separate from other regulatory agencies, the Herald reports. Hospital leaders "hailed" the study and said the findings support other reports that found the state's Medicaid reimbursements to be "low" (Powell, Boston Herald, 9/18).