Hospitals in states with expanded Medicaid will save $4.2 billion in uncompensated care this year

October 1, 2014

Hospitals will save $5.7 billion this year in uncompensated care costs due to the implementation of the Affordable Care Act (ACA), according to a new report by the U.S. Department of Health and Human Services (HHS).

Hospitals will save $5.7 billion this year in uncompensated care costs due to the implementation of the Affordable Care Act (ACA), according to a new report by the U.S. Department of Health and Human Services (HHS).

Hospitals in states that have expanded Medicaid under the ACA are expected to save up to $4.2 billion, or 74% of the total savings, while hospitals in states that have not expanded Medicaid are projected to save up to $1.5 billion.

HHS says the savings are the result of large number of Americans who gained health insurance through the ACA. As of July, nearly 8 million Americans had enrolled in Medicaid and the Children’s Health Insurance Program as a result of the ACA, according to HHS.

“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.”

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