Spending on medical care for inmates increased 24 percent from 2010 through 2014, according to a report released by the Department of Justice's watchdog agency, which attributed the spike to the fact the Bureau of Prisoners (BOP) pays for outside medical care at rates well above what Medicare typically pays.
All 69 BOP institutions reviewed by auditors paid reimbursement rates for medical care that exceeded Medicare rates by as much as 385 percent. The Office of Inspector General estimated that the BOP spent at least $100 million more than the Medicare rate in fiscal year 2014.
Although the BOP voiced concerns that legislative requirements aligning reimbursement for prisoners’ medical costs would mean fewer medical providers would be willing to treat inmates, the OIG found that the BOP has not explored other avenues for cost containment.
The watchdog agency recommended the BOP consider legislative options to manage reimbursement rates and healthcare costs, and collect inmate utilization data to better understand the needs of the population.
Earlier this month, three states reported costs savings associated with expanding Medicaid for incarcerated individuals. Other studies have touted the cost-saving benefits of understanding the health needs of inmates and parolees while telemedicine has emerged as a cheaper option for prisoners.
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