Congressional studies report that Medicare payments fall 11 percent below the cost of treating patients while private insurance patients pay 29 percent more than cost.This phenomenon is called

Question

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Cost-shifting occurs when healthcare providers charge private insurance companies more than the cost of care in order to compensate for the lower reimbursement rates from Medicare and Medicaid. This results in higher costs for private insurance patients and is a way for the providers to make up for the financial losses from treating Medicare and Medicaid patients.

Congressional Studies Report That Medicare Payments Fall 11 Percent Below