Hospitals Agree to Contribute $155B Over 10 Years for Uninsured Coverage

Tags: American Hospital Association | Catholic Health Association | health reform | uninsured

The American Hospital Association, the Federation of American Hospitals and the Catholic Health Association have agreed to contribute $155 billion over the course of 10 years to finance healthcare coverage for the nation's uninsured, according to a report in the Washington Post.

Approximately $100 billion of the savings will come from reduced Medicare and Medicaid reimbursements, and an additional $40 billion in savings will come from gradually reduced charity care benefits, according to the report. Both reductions are not expected to begin for "several years," after a significant number of currently uninsured individuals become enrolled in health plans.

Hospital leaders agreed to the reductions with the understanding that if final healthcare legislation includes a public-sponsored health plan, that plan will not pay Medicare or Medicaid rates.

Read the Washington Post's report on the hospital industry's agreement to cut $155 billion from government healthcare spending.

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