Medicaid, unlike any other insurance group, on the same medication could pay as little as $4.00 to $7.00 depending on the patient. This leads directly to cost shifting. Cost shifting occurs when one group of patients pays less than the actual cost of their medical care. Providers must in turn cover the losses by overcharging everyone else...
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Providers must in turn cover the losses by overcharging everyone else. The Congressional Budget Office's study on cost shifting showed $78 billion dollars were burdened onto patients without Medicaid in 1994 to make up for the medical field's lost profits (NCPA, 2001, 2). Medicaid does not have a single incentive program encouraging individuals to attempt to end their medical assistance...
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