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Did everybody catch that in Doyle's budget?
As I understand it, he is proposing a 6% assessment on GROSS REVENUES of all HMOs participating in the Medicare/Badgercare program. The money will be used to fund an increase in Medicare "capitation" (which is the monthly fee paid per participant)AND there is a suggestion that the increased revenue will show a greater "matching share" which would trigger an increase in Fed funding to the state.
IMO this is a bad, bad idea.
First, not all HMOs in the State participate in the program. So the "assessment" is rather selective and punitive.
Second, participation is voluntary so the assessment will cause many to opt-out of the program so that most medical providers will end up with the more expensive "fee-for-service" system.
Third, HMOs actually operate on a profit margin much, much smaller than 6%. This will put many of them in the red financially.
Thoughts?
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