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With ACA Repeal Uncompensated Care Would Increase by $1.1 Trillion

06 Jan

With ACA Repeal Uncompensated Care Would Increase by $1.1 Trillion

A new study has suggested that a repeal of the Affordable Care Act – even a partial repeal – could lead to a dramatic increase in uncompensated care.  The report, published by the Urban Institute, finds that the increased amount would reach $1.1 trillion over a ten-year period.

“The newly uninsured would seek $88.0 billion in additional uncompensated care in 2019 (not included in spending figures above), $24.6 billion of that amount from hospitals. From 2019 to 2028, the newly uninsured would seek $1.1 trillion in additional uncompensated care, including $296.1 billion in hospital care. Even if this additional uncompensated care is provided to the uninsured, a large body of research has linked uninsurance to reduced receipt of health care, increased financial stress, and worse health outcomes,” the report states.

Through programs like CAIN Health’s own Thrive, providers could alleviate this “financial stress” that will almost certainly effect the entire system. As noted in the report, “the additional financial burden of uncompensated care is likely to fall hardest on health care providers. Partial ACA repeal could lead to a fourfold increase in the amount of uncompensated care providers finance themselves compared to current levels. As a result there would likely be a substantial increase in unmet health care need for the uninsured.”

Through Thrive, CAIN Health arms health care providers with tools and support that will maximize efficiency and revenue capture during initial patient contact. This shortens collection cycles by qualifying patients, within seconds, for Thrive‘s no recourse, credit-based financing program. This means, through the use of Thrive, the burden of collecting patient self-pay responsibilities will be alleviated almost entirely. As uncompensated care increases throughout the industry, the Thrive program will become an indispensable tool for providers.

“The $35.0 billion increase in federal uncompensated care funding over 10 years would offer scant relief against the projected $1.1 trillion increase in uncompensated care services under an anticipated reconciliation bill. Budget constraints will limit how much state and local governments can contribute; the additional costs would require a sixfold increase in their spending on uncompensated care if they were to finance it all.” 

The report used the 2016 budget reconciliation package repealing the ACA as the baseline for their analysis.

 

Further Reading: http://www.rwjf.org/content/dam/farm/reports/issue_briefs/2017/rwjf433621

Source: Fierce HealthCare

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