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The author suggests that the programs aimed at
reducing the number of hospital readmissions were canceled due to
We learn later in the third paragraph that hospitals make money from readmissions.
Since we know that we are discussing the business aspect of hospitals, we can infer that the programs were too expensive for the hospitals and therefore they were forced to discontinue them.
The passage states that the programs were beneficial to patients by reducing readmissions, i.e., they were effective.
Although we can infer that the hospitals could not afford these programs, we have no information to infer that the insurance companies refused to pay for them.
Although it is reasonable to think that these programs would be expensive to the insurance companies, we have no information to infer that the insurance companies could not afford to or refused to pay for these programs because of their cost.