Hospitals Could Benefit from Full State Medicaid Expansion
March 26—Hospitals likely would gain $2.59 in revenue from newly enrolled Medicaid beneficiaries for every dollar they lose from private health insurance if all 50 states were to implement Medicaid expansion per the Affordable Care Act (ACA), according to a study by the Urban Institute. Under the ACA, Medicaid expansion would extend coverage to adults with incomes up to 138 percent of the federal poverty level.
Although hospitals would lose $113.6 billion in revenue as some patients move from private insurance plans to public coverage, if every state opts in, hospitals’ Medicaid revenue would increase by $293.9 billion, according to the study, funded by the Robert Wood Johnson Foundation.
However, the Supreme Court ruling allowing states to opt out of the expansion puts those hospitals in states that fail to expand at a relative disadvantage, as those hospitals will not receive the offsetting revenues created by newly eligible Medicaid patients, the study concludes.
Publication Date: Tuesday, March 26, 2013