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Md. officials outline plan to save Medicare waiver

Thursday - 3/28/2013, 12:23am  ET

BRIAN WITTE
Associated Press

ANNAPOLIS, Md. (AP) -- Maryland officials have briefed lawmakers on huge changes to how hospital costs are paid to try to keep the state's unique Medicare waiver agreement with the federal government.

The plan was outlined by the state health secretary Wednesday. The proposal was submitted to a federal agency on Tuesday.

The state would commit to limiting inpatient and outpatient hospital costs for all payers to a trend based on growth in the state's economy. A main idea is to switch from a system in which hospitals primarily make money when a patient is admitted to one in which hospitals would share in savings as patients stay healthy.

Carmela Coyle, president and CEO of the Maryland Hospital System, expressed anxiety about the plan, because the mechanics of how it will work remain unclear.


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