Moody’s Report: Hospitals Will Suffer Unless States Broaden Medicaid Coverage

Friday, 15 Mar 2013 01:54 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
U.S. hospitals will suffer if states fail to expand their Medicaid rolls as envisaged under the Affordable Care Act, according to a study by Moody's Investors Service.

The law calls for a cut in disproportionate-share (DSH) payments, which are granted to assist hospitals in paying for the care of uninsured patients, The Hill reports. The idea behind the cut is that most uninsured citizens will attain coverage through the individual mandate or the Medicaid expansion.

But the Supreme Court determined that the Medicaid expansion is optional, so state governments are likely to receive a lot of lobbying from the hospitals to approve it.

The 14 states that have declined the federal government’s offer to finance Medicaid expansion will face "budgetary strain" one way or the other, Nicole Johnson, a senior vice president at Moody's, says in a statement.

"States that opt out of Medicaid expansion will have to choose whether to compensate for the shortfalls with their own funds or leave hospitals to absorb the costs, which will increase rating pressure on the hospitals," she says.

Meanwhile, Diana Furchtgott-Roth, a senior fellow with the Manhattan Institute, argues that Obamacare will cost jobs, particularly for low-skilled labor, because the healthcare law imposes cost increases on employers.

“Whenever possible, firms will substitute high-skill for low-skill labor, part-time for full-time workers, machinery for people, and refrain from hiring a 50th worker, which can make them liable for penalties,” she writes on MarketWatch.



© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

GMO's Grantham Rips Yellen on Rates Policy

Tuesday, 22 Jul 2014 20:06 PM

Recent comments from Federal Reserve Chair Janet Yellen signal she won't raise interest rates to fight bubbles in financ . . .

Contrarian's Case: Why US Could Dip into Recession

Tuesday, 22 Jul 2014 18:11 PM

Just as the U.S. economy is strengthening, other countries are threatening to drag it down, says David A. Levy, who over . . .

US Said Poised to Designate MetLife as Systemically Important

Tuesday, 22 Jul 2014 15:45 PM

U.S. regulators are poised to label MetLife Inc. a potential threat to the financial system, subjecting the insurer to o . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved