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House bill requires hospitals to be paid more than they're asking for.

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Eric J in MN Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-29-09 10:36 AM
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House bill requires hospitals to be paid more than they're asking for.

http://docs.house.gov/rules/health/111_ahcaa.pdf

SEC. 323. PAYMENT RATES FOR ITEMS AND SERVICES.
(a)
...(2) MANNER OF NEGOTIATION.—The Secretary
shall negotiate such rates in a manner that results
in payment rates that are not lower, in the aggregate, than rates under title XVIII of the Social Security Act, and not higher, in the aggregate, than the average rates paid by other QHBP offering entities for services and health care providers.


So if the HHS Secretary is negoting rates with a hospital association which says they will provide a service for $10,000, the HHS Secretary has to say, No, I insist we pay you $20,000 for the service, because we can't pay less than in title XVIII.

There should be no floor. This means more money for hospitals and less money for patients, who will have to pay higher premiums.

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