Class 7 Unit 4 Topic 1 Comment 1 (M)

Class 7 Unit 4 Topic 1 Comment 1 (M)

Purpose: Comment the Discussion (Class 507 Unit 4 Topic 1 Comment 1 M)

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Thing to Remember:

Answer this discussion with opinions/ideas creatively and clearly. Supports post using several outside, peer-reviewed sources.

1 References, find resources that are 5 years or less

No errors with APA format 6 Edition

To Comment:

Health Care Policies That Use Cost Shifting

Cost shifting is a term which is used in the world of healthcare payments, Medicaid, insurance and Medicare reimbursements. Cost shifting occurs when hospitals and other healthcare providers charges an insured patient more than what it charges an uninsured one for the same service or procedure. Cost shifting is used both in private and public hospitals that apply health insurance policies especially Medicaid and Medicare (In Culyer, 2014).

Benefits of Cost Shifting

The benefits of cost shifting are that through cost shifting hospitals make up for the lower unit costs on Medicare and Medicaid patients. Some uncompensated care is financed by the private insurance through cost shifting like the hospitals are able to make up for the losses they might have incurred in treating uninsured patients through charging the insured patients higher (Norton, 2011).

Affordable Care Act Decreases Cost Shifting Within Hospitals

Affordable care act enables the centers for Medicare and Medicaid services to tie payment to quality standards, investing in patient safety and also offering new incentives for providers to deliver coordinated and high quality care. Through this practice cost shifting will be minimized since the hospitals which practice it will not get a chance to charge more than the quality of service they give (Li & University of Nebraska Medical Center, 2014).