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Cost shifting and cross-subsidization in health care Student’s Name Institutional Affiliation Cost Shifting and Cross-Subsidization in Health Care The similarities and differences between cost shifting and cross-subsidization Cost shifting refers to a phenomenon where the low rates of payment associated with Medicare makes health care providers modify the cost of treating patients from Medicare insured to patients who are privately insured. Cost shifting results to privately insured patients paying more as a way of catering for the low payments made by Medicare insured patients (Meyer and Johnson 2013). Cross subsidization on the other hand refers to a phenomenon where health care providers offer different charges to different types of customers. This means that patients with private insurance cater for a larger percentage when it comes to health care fixed cost compared to Medicare patients who are generally on the low margin. The cost shifting phenomenon in health care is (Craig 2015). Reference Banks D. Foreman S. & Keeler T. (2017). Cross-subsidization in hospital care: some lessons from the law and economics of regulation. Health Matrix 9(1):1–35. Chevalier J. (2014). What do we know about cross-subsidization? Evidence from merging firms. Advances in Economic Analysis & Policy 4(1) Article 3. Craig Garthwaite. (2015). Who Bears the Cost of the Uninsured? Nonprofit Hospitals. Retrieved from https://insight.kellogg.northwestern.edu/article/who-bears-the-cost-of-the-uninsured-nonprofit-hospitalsDranove D. (2017). Pricing by Non-Profit Institutions: The Case of Hospital Cost Shifting. Journal of Health Economics 7:47–57. Harold Miller. (2016). Problems with the Ways Hospitals Are Paid and Potential Solutions Center for Healthcare Quality & Payment Reform. Health Insurance Association of America. (1981). Hospital Cost Shifting: The Hidden Tax Washington D.C.: HIAA. Meyer J. & Johnson W. (2013). Health Affairs; Cost Shifting in Health Care: An Economic Analysis Steinbuch R. (2010). Healthy competition: getting the best hospital care for patients. Journal of the National Medical Association 102(6):491–492. [...]
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Essay Cost shifting and cross-subsidization in health care. Write a 5-7-page paper in which you address the following: · The similarities and differences between cost shifting and cross-subsidization · The benefits and disadvantages of cost shifting and cross-subsidization · The policies that use these methods · The role Medicare and managed care play in hospitals using cost shifting and cross-subsidization · Whether there is an alternate solution to address the financial loss hospitals incur when treating uninsured patients Cite at least three scholarly sources, one of which can be Health Policy and Politics. Format your paper according to APA guidelines. Submit your assignment. **Important Note: Title/reference pages do not count toward
