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House Decides Against Sending Billions in Medicare Payments to Low-Cost States

In the 11th hour of health reform negotiations last week, one strategic plan would have redirected about $3 billion of Medicare funds budgeted for California’s hospital patients to states with historically lower Medicare reimbursement rates. The idea was that greater levels of reimbursement to those states might persuade any recalcitrant lawmakers to vote for the bill. But that approach is no longer in play.

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