Medicare Advantage is 'jeopardizing' rural hospitals, execs say

Medicare Advantage is 'jeopardizing' rural hospitals, execs say
Becker's Hospital CFO Report; by Alan Condon; 10/2/24
Medicare Advantage is "failing patients" and "jeopardizing" Nebraska hospitals, according to a survey of 92 member hospitals from the Nebraska Hospital Association. MA provides health coverage to more than 55% of the nation's older adults, about 33.8 million people, but some hospitals and health systems are ending their contracts with MA plans over administrative challenges that include excessive prior authorization denial rates and slow payments from insurers. "Medicare Advantage challenges the future of critical access hospitals due to lower reimbursement rates, slower or denied payments, and increased administrative burdens," Jed Hansen, executive director of the Nebraska Rural Health Association, said during an Oct. 2 virtual meeting with hospital leaders. "Without changes to MA, our rural hospitals may be forced to cut staff and services, further harming patient care. Over time, some of our rural hospitals may be forced to close altogether."