MEDICAID EXPANSION DRAMATICALLY INCREASES Hospital Shortfalls - ...AND PUTS THEIR FUTURES AT RISK

5 MEDICAID EXPANSION DRAMATICALLY INCREASES HOSPITAL SHORTFALLS | FEBRUARY 16, 2024 | TheFGA.org MEDICAID SHORTFALLS ARE GROWING RAPIDLY IN EXPANSION STATES Because Medicaid does not pay enough to cover hospital costs, hospitals in most states have Medicaid shortfalls. [...] 6 MEDICAID EXPANSION DRAMATICALLY INCREASES HOSPITAL SHORTFALLS | FEBRUARY 16, 2024 | TheFGA.org One argument for expansion has been that getting people enrolled in Medicaid will reduce the charity care needed to be provided by hospitals at no cost.22 But the savings hospitals in expansion states have realized in reduced charity care is overshadowed by the increased Medicaid shortfall. [...] 7 MEDICAID EXPANSION DRAMATICALLY INCREASES HOSPITAL SHORTFALLS | FEBRUARY 16, 2024 | TheFGA.org The more people that are shifted from private insurance to Medicaid, the higher the Medicaid shortfalls, and the lower hospital profits. [...] Likewise, taxpayers and hospitals would be forced to subsidize the health care of nearly 13 million additional able-bodied adults, crowding out funding for the truly needy.34 This would increase the Medicaid shortfall in these states and reduce hospital profits, possibly to the point of forcing more closures. [...] Expansion would more than double the Medicaid shortfalls for hospitals in those states, the equivalent of losing nearly 100,000 hospital jobs.35-36 As seen in expansion states, the reduction in charity costs would not come close to making up for the shortfalls resulting from the reduced Medicaid payment rates.