Medicare reimbursement refers to payments to hospitals and doctors receive as a result of services provided to patients that are covered under Medicare. It is considered an example of discounting (Penner, 2016, p. 40.) As discussed above, the base payment reimbursement is usually less than amount that private insurance companies pay. The federal government sets this rate (Ku & Broaddus, 2008).
Medicare uses the Inpatient Prospective Payment System to pay hospitals. Diagnosis Related Groups consist of base rate for each diagnosis. Some hospitals receive additional payments (DSH) for serving higher populations of low-income patients. Physicians and other health care professionals are reimbursed on based on fee-schedule for the services (Cubanski,
Medicare uses the Inpatient Prospective Payment System to pay hospitals. Diagnosis Related Groups consist of base rate for each diagnosis. Some hospitals receive additional payments (DSH) for serving higher populations of low-income patients. Physicians and other health care professionals are reimbursed on based on fee-schedule for the services (Cubanski,