Medicaid Reimbursement for Common Orthopedic Procedures Is Not Consistent
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Abstract:
Two major forms of physician reimbursement include Medicare (MCR; federally funded) and Medicaid (MCD; state funded). The only oversight provided to individual states for setting MCD reimbursement is that it must provide a standard payment that does not negatively affect patient care. The goals of this study were to determine the variability of MCD reimbursement for patients who require orthopedic procedures and to assess how this compares with regional MCR reimbursement. Medicaid reimbursement rates from each state were obtained for total knee arthroplasty, total hip arthroplasty, anterior cruciate ligament repair, rotator cuff repair, anterior cervical decompression and fusion, posterior lumbar decompression, carpal tunnel release, distal radius open reduction and internal fixation, proximal femur open reduction and internal fixation, and ankle open reduction and internal fixation. Discrepancy in reimbursement for these procedures and overall differences in MCD vs MCR reimbursement were determined. Average MCD reimbursement was 81.9% of MCR reimbursement. There was significant variation between states (37.7% to 147% of MCR reimbursement for all 10 procedures). Twenty and 40 states provided less than 75% and 100% of MCR reimbursements, respectively. Medicaid valued knee arthroplasty (91.4% of MCR reimbursement) over other common procedures. Conversely, carpal tunnel release (74.1% of MCR reimbursement; P=.004) had the lowest reimbursements. The most interstate variation was noted for anterior cruciate ligament reimbursement, ranging from 20.6% to 229% of local MCR reimbursement. Disparities were found between MCR and MCD when comparing identical procedures. Further research is necessary to understand the impact of these significant differences. It is likely that these discrepancies lead to suboptimal access to necessary orthopedic care. [Orthopedics. 2019; 42(2):e193-e196.].
Insights
Medicaid reimbursement for orthopedic procedures varies significantly by state and averages 81.9% of Medicare rates. These disparities may impact patient access to orthopedic care.
Area of Science:
- Health Services Research
- Orthopedic Surgery
- Health Economics
Background:
- Physician reimbursement in the United States primarily consists of Medicare (federally funded) and Medicaid (state funded).
- Medicaid reimbursement oversight mandates that payments do not negatively affect patient care, but allows for significant state-level variability.
- Disparities in reimbursement rates between Medicare and Medicaid may influence healthcare access and provider participation.
Purpose of the Study:
- To quantify the variability of Medicaid reimbursement for common orthopedic procedures across different states.
- To compare state-specific Medicaid reimbursement rates with regional Medicare reimbursement rates.
- To identify specific orthopedic procedures with the greatest reimbursement discrepancies between Medicare and Medicaid.
Main Methods:
- Retrieved state-specific Medicaid reimbursement rates for ten common orthopedic procedures.
- Collected corresponding regional Medicare reimbursement rates for comparison.
- Calculated the average Medicaid reimbursement as a percentage of Medicare reimbursement for each procedure and across all states.
- Analyzed interstate variation in Medicaid reimbursement rates relative to Medicare rates.
Main Results:
- Average Medicaid reimbursement across all analyzed procedures was 81.9% of Medicare reimbursement.
- Significant interstate variation was observed, with Medicaid rates ranging from 37.7% to 147% of Medicare rates.
- Forty states reimbursed at less than 100% of Medicare rates, and twenty states reimbursed at less than 75%.
- Knee arthroplasty reimbursement was relatively high (91.4% of Medicare), while carpal tunnel release was lowest (74.1% of Medicare).
- Anterior cruciate ligament repair exhibited the widest interstate variation, from 20.6% to 229% of local Medicare rates.
Conclusions:
- Substantial and widespread disparities exist between Medicaid and Medicare reimbursement rates for orthopedic procedures.
- The significant variation in Medicaid reimbursement across states and procedures suggests potential inequities in patient access to care.
- Further research is warranted to understand the clinical and economic impact of these reimbursement differences on orthopedic patient outcomes.
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