Hospital group sues Arizona over provider cuts [Arizona Capitol Times]
By Luige del Puerto; Luige del Puerto | |
Proquest LLC |
The group wants to halt a five-percent cut in payment rates to providers, its officials told the Arizona Capitol Times.
Lawmakers approved the cut earlier this year as part of the state's budget-balancing act. It is estimated to save the state about
Last week, the federal government gave
The hospital association cited federal law that says
"Federal courts have interpreted this to mean that
The group estimated that the rate cut, along with four previous years of rate freezes and payment reductions, means payments to hospitals will fall by 33 percent below actual costs.
"We're asking the court to prevent an AHCCCS payment cut that will otherwise force hospitals to attempt to shift costs to the purchasers of private health insurance. That cost shift amounts to a hidden healthcare tax on all consumers -- exactly the wrong prescription for our ailing economy," said
Liles said previous cuts already forced some hospitals to eliminate services, reduce staff and raise the rates that are charged to commercial health plans.
The rate cut became effective retroactively to October.
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