States Continue to Cut Medicaid - Hospital Stays Reduced Due to Cost

October 25, 2011

Citing rising costs, Arizona and Hawaii are next in line for federal approval to limit hospital stays for Medicaid members.

The USA Today recently reported that Arizona plans to limit Medicaidmedicaid cuts member stays to 25 days per year starting as early as October 2011, while Hawaii plans to limit stays to 10 days per year beginning April 2012.

Opponents argue that the state Medicaid cuts will: 
    1. Restrict access to health care. 
    2. Result in higher costs to health care providers (hospitals).
    3. Result in higher costs for patients with private insurance.
States argue that the moves are an absolute necessity due to the economic downturn and the end of federal stimulus dollars.

What affect do you think this move will have?

Note: None of this should be taken as legal or tax advice.

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