News | October 13, 2014

New Report Projects $5.7B Drop in Hospitals’ Uncompensated Care Costs Because of the Affordable Care Act

Hospitals in states that have expanded Medicaid will receive about 74 percent of the total savings nationally

October 13, 2014 — A report released by the Department of Health and Human Services projects that hospitals will save $5.7 billion this year in uncompensated care costs because of the Affordable Care Act, with states that have expanded Medicaid seeing about 74 percent of the total savings nationally compared to states that have not expanded Medicaid.

For more than decade prior to the Affordable Care Act, the percentage of the American population that was uninsured had been growing steadily. But with the significant expansion of coverage under the health care law through the Health Insurance Marketplace and Medicaid, the uninsurance rate is at historic lows.  As a result, the volume of uncompensated care provided in hospitals and emergency departments has fallen substantially in the last year, particularly in Medicaid expansion states.

“Hospitals have long been on the front lines of caring for the uninsured, who often cannot pay the full costs of their care,” said HHS Secretary M. Sylvia Burwell. “Today’s news is good for families, businesses, and taxpayers alike.  It’s yet another example of how the Affordable Care Act is working in terms of affordability, access, and quality.”

Projections from today’s report suggest that hospitals in states that have expanded Medicaid under the Affordable Care Act will see greater savings than hospitals in states that have not expanded Medicaid. Hospitals in states that have expanded Medicaid are projected to save up to $4.2 billion, which makes up about 74 percent of the total savings nationally this year. Hospitals in states that have opted not to expand Medicaid are projected to save up to $1.5 billion this year, and which is only 26 percent of the total savings nationally.

Medicaid expansion continues to help an unprecedented number of Americans access health coverage, many for the very first time.  According to a recent report, as of July, nearly 8 million additional individuals are now enrolled in Medicaid and the Children’s Health Insurance Program (CHIP), compared to before open enrollment in the Marketplace began in October 2013.

Because of the Affordable Care Act, states have new opportunities to expand Medicaid coverage to individuals with family incomes at or below 133 percent of the federal poverty level (generally $31,322 for a family of four in 2013). This expansion includes non-elderly adults without dependent children, who have not previously been eligible for Medicaid in most states. Twenty-eight states, including the District of Columbia have expanded Medicaid under the Affordable Care Act.

For more information: aspe.hhs.gov/health/reports/2014/UncompensatedCare/ib_UncompensatedCare.pdf, medicaid.gov/AffordableCareAct/Medicaid-Moving-Forward-2014/Medicaid-Moving-Forward-2014.html

Related Content

Vascular screening for abdominal aortic aneurysm, peripheral artery disease and hypertension during the VIVA Study in Denmark

Vascular screening for abdominal aortic aneurysm, peripheral artery disease and hypertension during the VIVA Study. Photo credit: Lisbeth Hasager Justesen, Viborg Hospital.

News | Cardiac Diagnostics| September 12, 2017
September 12, 2017 — A new screening program for vascular disease saves one life for every 169 men assessed, accordin
Cardiovascular Research Foundation (CRF) announced the promotion of Juan F. Granada, M.D., as the foundation’s president and chief executive officer (CEO). CRF sponsors TCT.

The Cardiovascular Research Foundation (CRF) announced the promotion of Juan F. Granada, M.D., as the foundation’s president and chief executive officer (CEO).

Feature | Cath Lab| September 12, 2017
September 12, 2017 – The Cardiovascular Research Foundation (CRF) a
Abbott. St. Jude Medical has updated its firmware to address cybersecurity issues with its Allure Quadra MP and other EP devices

Abbott. St. Jude Medical has updated its firmware to address cybersecurity issues with its Allure Quadra MP and other EP devices.

Feature | EP Lab| August 29, 2017 | Dave Fornell
August 29, 2017 — The U.S.
News | August 28, 2017
To ensure you continue to receive information most critical to your job, please participate in a survey that will tak
Healthcare cybersecurity concerns have increased dramatically as EMRs and medical devices become more digitally connected.

Healthcare cybersecurity concerns have increased dramatically as EMRs and medical devices become more digitally connected.

Feature | Cybersecurity| August 18, 2017 | Dave Fornell
August 17, 2017 — Cybersecurity has become a growing concern in healthcare as patient data, medical systems and impla
CMS considers eliminating cardiac bundled payments.
Feature | Business| August 16, 2017 | Dave Fornell
August 16, 2017 — The Centers for Medicare and Medicaid Services (CMS) announced a proposed rule to reduce the number
CMS is considering eliminating or changing bundled payments for cardiac rehabilitation.

CMS considers eliminating or changing bundled payments for cardiac rehabilitation.

News | Business| August 14, 2017 | Dave Fornell
...
Left Atrial Pressure Monitor from Vectorious Medical Technologies Offers New Hope for Heart Failure Patients

On of the top stories in July was the introduction of a left atrial pressure monitor from Vectorious Medical Technologies to prevent heart failure patient hospitalizations or readmissions. Read the article"Left Atrial Pressure Monitor Offers New Hope for Heart Failure Patients."

Feature | August 01, 2017 | Dave Fornell
Aug.
Nuance Restores Service to Majority of eScription Clients Following Malware Incident
News | Information Technology| July 28, 2017
Nuance Communications Inc. provided an update on its restoration process following the previously reported June 27,...
Overlay Init