Hospital Reimbursement under National-Health Insurance

The Carter Administration has made a commitment to introduce into the Congress a proposal for national health insurance. This proposal would have the effect of expanding the role of the federal government In the financing of medical care - a role that first assumed major significance with the passage of the Medicare and Medicaid legislation.

A crucial element of the administration's program will consist of the sets of incentives, regulations, and reimbursement practices related to hospitals under national health insurance. 2 The matter of reimbursement is of particular concern because the largest single element of expense in medical care expenditure today consists of payments to hospitals. In fact, hospitals currently receive approximately 46% of the personal health care dollar.