Hospitals Stand to Lose if States Opt Out of Medicaid

Hospitals and uninsured patients in states that decide to forego the Medicaid expansion within the Patient Protection and Affordable Care Act could see direct negative impacts in lost reimbursement and continued health deterioration, according to an Austin Statesman report.

As of today, eight Republican governors have rejected the healthcare law's Medicaid expansion, which the Supreme Court ruled was optional for states. Texas Gov. Rick Perry was the most recent and most outspoken about opting out of the expansion, calling it and the health insurance exchanges "brazen intrusions into the sovereignty of our state."

Several hospitals and clinics stand to gain millions in previously unrealized federal reimbursement for taking care of new Medicaid patients. However, states that decline the new Medicaid funds are putting providers and communities in a difficult position compared with states that accept the funds.


"What that means is: Local communities, it's your problem to solve," Patricia Young Brown, president and CEO of Central Health in Austin, Texas, said in the report. Her organization could see up to $8 million in additional reimbursement per year if Texas adopted the Medicaid provision. "You can pay a dollar now to keep someone as healthy as possible, or you're going to pay for it later when they're sick," she said.

HHS Secretary Kathleen Sebelius has urged governors to participate in the PPACA's Medicaid expansion. According to a report from The Hill, Sec. Sebelius wrote to state governors HHS wants "to work with you achieve our ultimate shared goal of ensuring that every American has access to affordable, quality healthcare."

More Articles on Medicaid Expansion:

Governors Associations, Medicaid Directors Ask for Clarity Post-Healthcare Law Decision

Gov. Rick Perry: Texas Will Not Participate in Medicaid Expansion

Supreme Court Upholds Healthcare Reform Law

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