Massachusetts to win $275M through Medicare loophole, states outraged

To the dismay of all the other states who lose out, Massachusetts hospitals will reap $275 million in Medicare reimbursements under a loophole in a new payment system, reports the Associated Press.

"If I could think of a better word than outrageous, I would come up with it," said Wisconsin Hospital Association President Steve Brenton in the article.

Last week, Medicare issued an inpatient payment regulation with only a select few coming out on top, at the expense of other states. Six other states, including Alaska, California, Colorado, Connecticut, New Hampshire, and New Jersey, benefit from the change, although not nearly as much as Massachusetts' advantage. For instance, New Jersey could gain $54 million, according to the article.

"We do not see this as a manipulation of the rules," said Lynn Nicholas of the Massachusetts Hospital Association.

Sen. John Kerry (D-Mass.), who cosponsored the healthcare amendment, supported the change too.

"When (Medicare) changed the rules five years ago, the rest of the country gained at our expense and Massachusetts took a big hit," Kerry said in a statement. "These new rules just provide some correction."

Among the biggest losers, New York will suffer $47.5 million in losses as a result of the change.

For more information:
- read the AP article

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