Healthcare News & Insights

Senate introduces latest ACA repeal bill: What it means for hospitals

After weeks of secrecy, the Senate finally released its version of the Affordable Care Act (ACA) replacement bill. While it similar to the House original proposal, there are a few key changes in the legislation. Here what most important for hospitals going forward.

The the American Health Care Act, it still facing an uphill battle.

Changes & concessions

A significant point of contention is the new bill treatment of Medicaid. The Better Care Reconciliation Act would limit Medicaid spending even more than the House bill, Per an article in CNN, instead of tying federal funding for existing Medicaid patients to the medical inflation rate, itl be impacted by the standard inflation rate, starting in 2025. This rate is lower than the medical inflation rate, so states will have less money to work with. As a result, they likely start cutting back on payments to providers, along with scaling back enrollment and benefits.

Not only would this affect millions of people with Medicaid, itl also have a big impact on hospitals™ bottom line. The Medicaid expansion has been a boon for many facilities, since it lowered uncompensated care costs. However, those numbers could spike again if the Medicaid expansion discontinued and funding is limited.

Even more patients may lose insurance coverage if some of the proposed changes to premium subsidies are approved. Unlike the American Health Care Act, which wanted to replace the ACA subsidies based on income with a system based on age, the new bill takes a different approach that like the ACA, but with stricter criteria for eligibility.

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