Moody's: Hospitals, Drug Companies Stand to Lose Most From Supercommittee

As the Joint Select Committee on Deficit Reduction, also known as the supercommittee, looks for ways to reduce the country's national debt by its Nov. 23 deadline, hospitals and pharmaceutical companies could stand to lose the most, according to a Moody's Investors Service news release.

Moody's officials believe the supercommittee will target four main areas within healthcare: Medicare cost-sharing for seniors, payments to healthcare providers, prescription drug costs and Medicaid spending.


This would most likely impact both non-profit and for-profit hospital negatively, according to the release. Currently, the federal government reimburses providers roughly 70 percent of bad debts involving Medicare beneficiaries who don't pay co-insurance and deductible amounts exempt from Medicare. Lisa Goldstein, associate managing director in Moody's non-profit hospital division, said a supercommittee deal could result in a 25-45 percent drop.

Drug companies would most likely see an increase in rebates toward the government, which could result in a 2-7 percent hit to their revenues.

Related Articles on the Supercommittee:

Supercommittee Expected to Maintain Healthcare Reform Funding

Supercommittee Democrats Propose $350B in Savings Through Medicare Reform

House Members Urge Supercommittee to Protect Critical Access Hospitals

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