Keokuk, IA – Congressman Dave Loebsack (D-IA) says the Medicaid and Medicare reimbursement formulas should start rewarding quality health care. He says the current system is not working for hospitals in rural states like Iowa.
When a hospital provides a service to a Medicare or Medicaid patient, they file a claim to be reimbursed by the state or federal government. The amount of the reimbursement depends, in part, on the services provided and the location of the hospital.
Congressman Loebsack says the current formula means that many hospitals in Iowa do not receive enough money to cover their expenses for a patient. He says location and cost of living should not be key factors in the reimbursement process.
"If we are going to do this right, we have to make sure that quality of care is a fact that is rewarded across the country," says Loebsack, adding "these geographic disparities cannot exist."
The congressman says he will introduce legislation, later in June, to change the reimbursement formula. He says quality of health care provided would be a key reimbursement factor, which he believes would greatly benefit Iowa based on its national rankings.
Congressman Loebsack says improving the Medicare and Medicaid reimbursement formulas would also help in the recruitment of top-notch professionals in rural parts of Iowa. The state currently ranks near the bottom, nationally, when it comes to reimbursements.
Congressman Dave Loebsack recently met with health care providers at Keokuk Area Hospital as part of a health care tour throughout Iowa's 2nd District.