Government
Medicaid costs less
NEWS IN BRIEF — Posted April 19, 2004
Medicaid, while undeniably an expensive program, is actually more efficient than private plans, according to a report from the Kaiser Family Foundation. Medicaid has higher per capita spending, but that is mainly due to the program serving three times as many individuals in poor to fair health and four times as many disabled adults as private health plans.
Once these factors were adjusted for, Medicaid's costs per patient were lower than those for private plans. The report notes, however, that this savings comes from lower reimbursement to physicians and others, and this can affect participation rates and patients' access to care.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/04/19/gvbf0419.htm.