How the American Health Care Act’s Changes to Medicaid Will Affect Hospital Finances in Every State
<p>The American Health Care Act (AHCA), as passed by the U.S. House of Representatives, reduces federal spending on Medicaid by more than $834 billion over the next 10 years. And the recently released Senate bill cuts Medicaid even more deeply. </p><p>In a new post on <em>To the Point</em>, Randy Haught, Allen Dobson, Joan DaVanzo, and Melinda Abrams report that this loss of Medicaid funding will have a profoundly negative impact on U.S. hospitals over the next 10 years. Hospitals in all states, but especially those in states that expanded Medicaid, will see an increase in uncompensated care—services not reimbursed by the insurer or patient. </p>
<p>The researchers also forecast lower operating margins, with rural hospitals in nonexpansion states facing marked declines. </p>