Hospitals across the country can expect a projected $5.7 billion decline in their uncompensated care costs this year because of the millions of people who gained insurance under the Patient Protection and Affordable Care Act, according to a recent HHS report.
Here are 10 things to know about the reduction in uncompensated care, according to the report.
1. The projected cut in uncompensated care was based on a 7.9 million person increase in the number of uninsured individuals covered by Medicaid and a 10.3 million person decrease in the number of individuals who are uninsured overall.
2. The $5.7 billion decrease represents a 16 percent reduction in uncompensated care spending nationally.
3. Approximately $4.2 billion of the reduction will come from the 25 states and
4. Approximately $1.5 billion of the reduction in uncompensated care will come from the 23 non-expansion states.
5. Between the first quarter of 2013 and the second quarter of 2014, hospitals in states that have expanded Medicaid saw reductions ranging from 28 to 33 percent in the number of uninsured and/or self-pay admissions, while hospitals in non-expansion states did not have declines in their volumes.
6. The declines in volumes of uninsured admissions were even greater between the second quarter of 2013 and the second quarter of 2014. Hospitals in states that have expanded Medicaid experienced declines ranging from 48 to 72 percent, while hospitals in non-expansion states had declines ranging from 0 to 14 percent.
7. Hospitals saw an overall decline in emergency department visits by uninsured patients between the first quarter of 2013 and the first quarter of 2014.
8. In states expanding Medicaid, the number of uninsured patients coming to EDs declined by 16 to 28 percent, while there were small to no changes among hospitals in states not expanding Medicaid.
9. Hospitals in Medicaid expansion states experienced increases in their volume of Medicaid patients ranging from 4 to 31 percent, while there is no evidence that Medicaid admissions increased at hospitals in non-expansion states.
10. Uncompensated care costs declining in Medicaid expansion states but not in non-expansion states has significant implications for hospitals future financial performance. It will impact hospitals' ability "to remain clinically excellent and financially solvent in the setting of impending decreases in federal reimbursement and uncompensated care in coming years," the report read.
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