Cost shifting is a term which is used in the world of healthcare payments, Medicaid, insurance and Medicare reimbursements. Cost shifting occurs when hospitals and other healthcare providers charges an insured patient more than what it charges an uninsured one for the same service or procedure. Cost shifting is used both in private and public hospitals that apply health insurance policies especially Medicaid and Medicare (In Culyer, 2014).
The benefits of cost shifting are that through cost shifting hospitals make up for the lower unit costs on Medicare and Medicaid patients. Some uncompensated care is financed by the private insurance through cost shifting like the hospitals are able to make up for the losses they might have incurred in treating
The benefits of cost shifting are that through cost shifting hospitals make up for the lower unit costs on Medicare and Medicaid patients. Some uncompensated care is financed by the private insurance through cost shifting like the hospitals are able to make up for the losses they might have incurred in treating