Under the Affordable Care Act, hospitals will see a $2.59 increase in Medicaid revenue for every dollar they lose in private payments, according to a new report from the Urban Institute and the Robert Wood Johnson Foundation.
Click here to read the full report.
As of next January, ACA’s Medicaid expansion will extend public coverage to adults making below 138 percent of the federal poverty level (FPL). The expansion will increase hospitals’ public insurance revenue by creating a larger Medicaid coverage pool.
Originally mandated by ACA, the Supreme Court ruling allowed states to opt out of the law’s Medicaid expansion, leaving each state’s decision to participate in the hands of state lawmakers. In Florida, about 20 percent of the population is already on Medicaid.
Although Florida Gov. Rick Scott, who had been among the plan’s harshest critics is now championing Medicaid expansion, Florida lawmakers are showing signs they are unwilling to pass it during this session.
The report notes that “even with a Medicaid expansion, hospitals will continue to provide uncompensated care, 46 percent of which will go to patients with incomes at or below 138 percent of FPL. Medicaid expansion could let the ACA’s new provision for hospital-based presumptive eligibility cover a sizable portion of these remaining uncompensated care costs
If states choose to expand their Medicaid programs, hospitals would get another $293.9 billion from 2013 to 2022, a 22.8 percent increase in Medicaid reimbursements, the study notes.
However, it also notes that hospitals must still help to pay for health reform’s coverage expansion, even if their state opts out.