How Do Medicare and Medicaid Differ in Terms of Reimbursement?
Medicare and Medicaid reimbursement mechanisms are distinct. Medicare typically uses a prospective payment system where a fixed amount is paid for patient care based on the diagnosis-related group (DRG) classification. On the other hand, Medicaid reimbursement rates are set by individual states and can vary widely. Medicaid often uses fee-for-service or managed care models to reimburse healthcare providers.
