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State Medicaid policies and hospital care for AIDS patients.

The public sector has paid a major portion of the hospital bill for acquired immunodeficiency syndrome (AIDS) patients. According to our national estimates of AIDS inpatient hospital costs, private insurance covered approximately 17 percent of the $380 million bill for 1985, with public funds paying most of the remainder. Medicaid, by far, represents the primary source of public third-party coverage for AIDS patients. William Roper, head of the Health Care Financing Administration (HCFA), stated at a 1987 Project HOPE conference on AIDS that Medicaid currently covers 40 percent of the costs of AIDS treatment, representing $200 million in 1985. The Medicaid contribution is expected to increase to $1.8 billion by 1991. Medicaid’s pivotal role in financing AIDS care suggests that the Medicaid policies established in each state will significantly affect hospital reimbursement and, possibly, providers’ behavior in treating AIDS patients. The study reported in this DataWatch, using data from a national survey of AIDS inpatient care in US. public and private major teaching hospitals during 1985, examines the relationship and characteristics of institutions treating AIDS patients in states with liberal and restrictive programs.