Posted at: 10/08/2009 3:54 PM

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Mayo Drops Medicaid Service for Nebraska, Montana

ROCHESTER, Minn. (AP) - Mayo Clinic says it will stop serving Medicaid patients from Nebraska and Montana because of low government reimbursement rates.

The Post-Bulletin of Rochester reports the change will take effect Jan. 1.

Mayo currently takes Medicaid patients from those two states plus Minnesota, Wisconsin, Iowa, and North and South Dakota. Spokeswoman Shelly Plutowski says there's no plan to change that.

Plutowski says the low reimbursement rate is one reason Mayo wants the health care system changed to something that rewards providers for keeping patients the healthiest.

Mayo says about 50 patients will be affected by canceling contracts with Montana and Nebraska. Plutowski says it's more appropriate for patients in those states to be seen in their own regions.

(Copyright 2009 by The Associated Press.  All Rights Reserved.)