Article: Gap between public, private reimbursement raises coverage costs.

Health Insurers Protest $88.8 Billion ‘Hidden Tax’

Dec. 9 (Bloomberg) -- Employers and private health insurers pay a “hidden tax” of $88.8 billion each year because government programs fail to pay enough to doctors and hospitals, an industry-sponsored study found.
Inadequate reimbursements by programs such as Medicare and Medicaid increase the annual cost of covering a family of four by $1,788, according to the report, issued today by the actuarial consulting firm Milliman Inc. At hospitals, the payment gap between private and public insurance has more than doubled in 10 years, the Seattle-based firm said.

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