PPACA Medicare Expansion Strains Capacity

Enrollment in the Medicaid expansion under the Patient Protection and Affordable Care Act promises to create capacity problems in clinics nationwide, with one-third of physicians who currently see Medicaid patients no longer accepting new Medicaid patients, according to a report from Bloomberg News.

A Medicare physician shortage could create a situation in which the 5 million additional Medicaid enrollees and the current Medicaid population will have to travel to more crowded clinics and wait longer than those with private insurance to see a physician, according to the report.

A primary reason for the Medicaid primary care physician shortage and capacity crunch is low Medicaid payments, which can be as low as half of a Medicare payment and one-tenth of a payment from a private insurer, according to the report.

Some clinics expect to see as much as a 40 percent increase in Medicaid patients seeking care, so many are hiring more nurses and physicians and are hiring consultants to help improve patient flow with higher patient volumes and fewer resources per patient, according to the report.

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