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Thats what I thought. Very few pts have straight medicare with no supplement, and proton centers/MDACC types take very little medicare advantage.Where we have contracts >100% of Medicare, the private insurer kicks in the remainder up to our negotiated rates, so we end up getting >20%. We do not negotiate a separate rate for straight PPO vs. secondary plans. I suspect hospitals are similar and end up getting enormous payments from the health plans through the secondary insurance. That's the real racket here. It's also why commenting on slight Medicare utilization differences between hospitals and freestanding centers is a red herring...because the hospitals are killing it on the back end with these secondary insurances.
When patients have straight Medicare, the secondary can't deny payment if Medicare pays...they have to follow CMS's lead. Medicare Advantage is different because the patient has essentially assigned his Medicare over to the health plan and that does free up the health plan to some extent. The health plan still technically has to follow Medicare guidelines, but they can restrict their networks so that this service is not offered "in network."
When they do take medicare advantage- here is how the game is played:
United: we want you take our medicare advantage product at 1.1x CMS rates. To sweeten the deal, go ahead and charge the teachers union (where we are just a transaction manager/not at risk) 9 instead of 8 x CMS.
MDACC/MSKCC: ok, but we want to charge them 10 x CMS, and throw in the police union and some large private employers at this rate.
United: deal.