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Health insurers toughen stance in disputes over hospital rates

Wall Street Journal, March 19, 2010

Health insurers are fighting demands by hospitals for higher reimbursement rates by threatening to drop the hospitals from their health-plan networks and blaming them for higher insurance premiums, the Wall Street Journal reports. Hospitals argue that low Medicare rates and cuts to Medicaid mean that hospitals have to get money from elsewhere, and increasingly that is private insurers. Rising ranks of uninsured Americans have led to more uncompensated care and have swelled the rolls of Medicaid, exacerbating the problem, reports the Journal.