Lending a Hand to Health Care Disparities: A Cross-sectional Study of Variations in Reimbursement for Common Hand
Elizabeth B Odom1, Elspeth Hill1, Amy M Moore1
1Washington University School of Medicine, St. Louis, MO USA.
Insights
Reimbursement for common hand surgeries varies significantly by insurance type, with government plans like Medicare and Medicaid paying substantially less than private insurance or worker's compensation. This disparity may impact patient access to care.
Area of Science:
- Orthopedics
- Health Economics
- Health Services Research
Background:
- Hand function is critical for quality of life.
- Financial disincentives for common hand procedures under government insurance may cause delays and reduce access to care.
- Understanding reimbursement variations is crucial for patient care.
Purpose of the Study:
- To identify and compare reimbursement variations for four common hand procedures across different insurance payor types.
- To analyze the financial implications of these variations on access to hand surgery care.
Main Methods:
- Billing data from 3489 hand procedures (carpal tunnel release, cubital tunnel release, ganglion cyst excision, interposition arthroplasty) between 2005-2015 were analyzed.
- Patients were categorized by insurance type: private, Medicare, Medicaid, and worker's compensation.
- Reimbursement as a percentage of submitted charges was directly compared across payor groups and procedures.
Main Results:
- Reimbursement percentages varied significantly by payor type for all procedures.
- Worker's compensation reimbursed an average of 65.5% of charges, private insurance 50.6%, Medicare 25.1%, and Medicaid 24.6%.
- These disparities suggest potential financial barriers affecting surgical practice.
Conclusions:
- Significant variations in reimbursement exist for common hand procedures based on insurance payor.
- These financial discrepancies may lead surgeons to limit services for certain patient groups.
- Addressing these reimbursement differences is essential to prevent disparities in hand surgery care delivery.
Abstract:
Background: Despite the role of one's hands in human function and quality of life, financial disincentives to perform common hand procedures in patients with government-sponsored insurance plans may lead to longer wait times and decreased access to care. Here, we identify the variations in reimbursement for 4 common hand procedures as a step toward understanding these financial implications to develop safeguards to minimize effects on access to care. Methods: Billing data were collected over a 10-year period for patients undergoing carpal tunnel release (open, Current Procedural Terminology 64721; endoscopic, 29848), cubital tunnel release (64718), ganglion cyst excision (25111), and interposition arthroplasty (25447). Patients were placed into cohorts according to insurance type-private insurance, Medicare, Medicaid, or worker's compensation-and these were directly compared. Results: A total of 3489 procedures between 2005 and 2015 were identified in this study (carpal tunnel 65.8%, cubital tunnel 28.7%, ganglion cyst excision 4.1%, and interposition arthroplasty 13.8%). In all, 54.7% of patients had private insurance; 26.3%, Medicare; 10.5%, worker's compensation; and 8.5%, Medicaid. Reimbursement, as a percentage of charge, differed significantly by payor type for all cases and by procedure. On average, worker's compensation plans reimbursed 65.5% of submitted charges; private insurance, 50.6%; Medicare, 25.1%; and Medicaid, 24.6%. Conclusions: We found that wide variations in reimbursement for common hand procedures exist and may preclude some surgeons from offering certain procedures to a subset of patients. Understanding these discrepancies is a key first step in minimizing a potential care delivery disparity for this patient population.
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