Posted: Friday, 26 April 2013 11:51AM
Blue Cross Payment Change
The Minnesota Hospital Association says a payment change plan by Blue Cross Blue Shield of Minnesota scheduled to take affect on May First, will slash payments to hospitals and have a particularly devastating effect on rural health care.
According to a press release, MHA President and CEO Lawrence Massa described the payment change as converting Blue Cross payments from a negotiated discount to a below-cost or marginally above-cost rate unilaterally set by Blue Cross Blue Shield.
Massa says he has heard from dozens of hospitals, scheduled to have their payments cut on May First, that the impacts will be in the hundreds of thousands to millions of dollars. Some could be plunged into the red
Massa says he has also heard of some hospitals eliminating services such as home health care. In addition, Massa says he has also heard of one hospital where the employees collectively chose to forego a portion of their retirement benefits to help salvage access to health care for patients.
The Minnesota Hospital Association represents 144 hospitals and health systems across the state.