Low Medicare/Medicaid Payments Affect Private Market

A study commissioned by Blue Cross Blue Shield shows that hospitals and other health care providers charge private payers higher fees to make up for underpayments received from the government-operated Medicare and Medicaid programs. The additional fees charged to private payers also compensate for the amount of money spent treating uninsured individuals who cannot pay. Ultimately, consumers get stuck with the bill, as insurance companies raise premiums in response to the increased payments they must make.