From 2014 to 2020, hospitals will see about $1.19 billion in revenue if the state expands Medicaid, compared with $1.42 billion if the program isn’t expanded, according to the report. The state’s 26 hospitals and health systems will experience a $1.3 billion reduction in bad debt and charity care if Medicaid is expanded, compared to an $862 million reduction over the next seven years if the program isn’t expanded, according to the report.
However, having more people enrolled in Medicaid also means hospitals will experience more Medicaid payment shortfalls. Under the expansion, hospitals and health systems will experience $1.91 billion in shortfalls from the program, compared with $1.44 billion if there’s no expansion, according to the report.
Additionally, if the state doesn’t expand Medicaid, the report states more of the newly insured will have coverage from private insurance companies, since people between 100 and 138 percent of the federal poverty level will be eligible for subsidized private coverage through the new exchanges. Hospitals typically receive much higher payments from private insurers than they get from Medicaid, according to the report.
The debate over whether or not to expand the state’s Medicaid program was still ongoing as of July, according to the Kaiser Family Foundation.
More Articles on Medicaid Expansion:
Republican Group Trying to Block Arizona Medicaid Expansion
Michigan Gov. Snyder Continues Push for Medicaid Expansion
Conservatives Protest Virginia Medicaid Expansion
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