WHAT is cost-shifting?
Cost shifting occurs when providers do not receive sufficient payment to cover what it costs them to render treatment, either because their patients are uninsured, or Medicaid payment is too low. This causes them to charge private insurers more than it costs to render treatment, thus “shifting” the cost burden. Cost shifting occurs everyday, in Virginia and nationwide. It is estimated that this added $1,107 to the cost of each family premium, and $368 to the cost of each individual premium throughout the country in 2008.
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