Yesterday, in a cloture vote, the Senate voted to move forward with the House’s spending resolution to fund the government. Within the resolution, House Republicans inserted language that tied the federal budget to defunding the PPACA. However, the Democrat-controlled Senate has the ability to amend the legislation and remove any provision to cut off PPACA funding.
In addition, many state governments are “hindering the ability of individuals to enroll in health plans offered on the insurance exchanges,” according to Fitch’s article.
Fitch said the expansion of private health insurance and Medicaid under the PPACA, which is expected to add 19 million Americans to the insured population over the next two years, will benefit the healthcare industry that has had to endure upfront costs from the law. For example, Medicare cuts to hospitals, the medical device excise tax and pharmaceutical fees have dug into the healthcare industry’s profitability.
The political posturing could “dampen the early benefits of expanding health insurance” under the law, Fitch analysts said.
More Articles on Fitch Ratings Reports:
Fitch: 20 Statistics on Hospital Financial Margins
Fitch Upgrades HCA’s Debt After Strong First Half of 2013
Fitch: HMA’s Credit Not Punctured in Board Firings
