Do Reimbursement Delays Discourage Medicaid Participation By Physicians?

• Published in: Health Affairs Vol. 28; no. 1; p. w17
• Main Authors: Cunningham, Peter J, O'Malley, Ann S
• Format: Journal Article
• Language: English
• Published: United States Health Affairs 01-01-2009; The People to People Health Foundation, Inc., Project HOPE
• Subjects: Accounts receivable; Attitude of Health Personnel; Claims processing; Data Collection; Economic statistics; Fees & charges; Government programs; Humans; Insurance, Health, Reimbursement - economics; Insurance, Health, Reimbursement - trends; Interviews as Topic; Medicaid; Medicaid - economics; Medicaid - organization & administration; Medicare; Patients; Physicians; Reimbursement; Studies; United States; United States; United States > US
• ISSN: 0278-2715; 1544-5208
• DOI: 10.1377/hlthaff.28.1.w17

Policymakers have focused primarily on increasing Medicaid reimbursement rates to increase physicians' participation in Medicaid, although physicians often complain of payment delays and other administrative burdens associated with Medicaid. Linking state-level data on average reimbursement times to the 2004-05 Community Tracking Study Physician Survey, this study examines how Medicaid reimbursement time affects physicians' willingness to accept Medicaid patients. Delays in reimbursement can offset the effects of high Medicaid fees, thereby lowering participation to levels that are closer to those in states with relatively low rates. Increasing these rates may be insufficient to increase physicians' participation unless accompanied by reductions in administrative burden.