Safety net hospitals could lose $40 billion if ACA is repealed
A new analysis by America's Essential Hospitals found that hospitals that primarily serve low-income patients could collectively lose $40 billion in funding over the next decade if the Affordable Care Act is repealed without a comparable replacement. That amount represents lost coverage and cuts to Medicaid and Medicare disproportionate share hospital (DSH) funding from 2018 through 2026.
The ACA called for those cuts because hospitals would have theoretically needed that funding less as more people gained coverage on the marketplaces and through Medicaid expansion. According to Modern Healthcare, “assuming Congress uses a repeal bill first introduced in 2015 that canceled cuts to Medicaid DSH payments, safety net hospitals would still experience a $16.8 billion loss over the same period because of lost individual coverage and the continuation of Medicare DSH cuts. For hospitals that often have very thin margins, the loss in funds could be a major blow.”
A new analysis by America's Essential Hospitals found that hospitals that primarily serve low-income patients could collectively lose $40 billion in funding over the next decade if the Affordable Care Act is repealed without a comparable replacement. That amount represents lost coverage and cuts to Medicaid and Medicare disproportionate share hospital (DSH) funding from 2018 through 2026.
The ACA called for those cuts because hospitals would have theoretically needed that funding less as more people gained coverage on the marketplaces and through Medicaid expansion. According to Modern Healthcare, “assuming Congress uses a repeal bill first introduced in 2015 that canceled cuts to Medicaid DSH payments, safety net hospitals would still experience a $16.8 billion loss over the same period because of lost individual coverage and the continuation of Medicare DSH cuts. For hospitals that often have very thin margins, the loss in funds could be a major blow.”