Feds will pay most of Medicaid expenses

April 07, 2010

The story on the Health Services Cost Review Commission's (HSCRC) decision about the state's $123 million Medicaid cut hasn't quite got the numbers right ("Patients, insurers to pay more," April 7).

Where the story asserts that the commission voted to "make patients and insurance companies shoulder most of $123 million in Medicaid expenses," in fact it is the federal government that will shoulder most of the burden. While these are complex formulas, the split works out this way: the federal government will pay $47 million; hospitals will pay $39 million; and insurers will absorb $37 million. Further, the rate increase won't affect insurance premiums this year, which are already set; the impact on future premiums depends on many, many factors.

Carmela Coyle, Elkridge

The writer is president and CEO of the Maryland Hospital Association.

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