Since 1974, Maryland has been the only state in the nation which sets uniform hospital prices for all insurers. That changed on January 10, 2014. On that date, The Centers for Medicare and Medicaid Services (CMS) and the state partnered to modernize Maryland’s unique all-payer rate setting-system for hospital services.
The goal? As it should be, to improve patients’ health and reduce costs. Under the new model, Maryland and CMS have the opportunity to test whether an all-payer systems is an effective model for advancing care, improving health and reducing costs. Who wouldn’t want that? And there’s more…if this landmark payment model works, according to CMS, Medicare is estimated to save at least $330 million over the next five years.
Maryland’s $16 billion hospital industry is at risk to lose about $1 billion in Medicare payments. Maryland is home to some of the world’s best healthcare providers and care – let’s make this work and be a model for other states. Save money and improve population health? It’s a no brainer. – jcr