Maryland's Health Care Shift: Higher Costs Ahead?

Maryland is making big changes to how hospitals get paid. This shift is called the AHEAD model. It will start in 2028. The state will lose control over setting Medicare rates. Instead, the federal government will take over. Private insurers are not happy. They think this will make health care even more expensive. Matthew Celentano from the League of Life and Health Insurers in Maryland said, \"We are worried. Health care costs are already too high for many families and businesses. \" The old system, called Total Cost of Care, ended on December 31. It made sure everyone paid the same for hospital services. But now, things are changing. Hospitals will charge private insurers more. This could raise premiums by 1. 8% by 2032.Another issue is Medicare Advantage. This is extra insurance that covers things like vision and dental. About a quarter of Maryland Medicare recipients use it. But insurers are leaving the state. They say the current system is too costly. To keep insurers in Maryland, the state will lower the rates they pay hospitals. Starting in 2027, they will pay about 11. 55% less. But private insurers will have to make up the difference. Their rates could go up by 2. 55% by 2032. The state is trying to fix these problems. They created a workgroup to handle the changes. Health Secretary Meena Seshamani said, \"We have a lot of work ahead of us. \" But some people are worried. Gene Ransom, CEO of MedChi, asked, \"What happens between now and 2027? \" It's a good question. The transition to AHEAD is not smooth. There are many uncertainties ahead.