This Quick Strike Series brief, published online in March 2013 by the Urban Institute with the support of RWJF, looks at whether hospitals stand to gain more in revenue under the ACA's Medicaid expansion compared to a scenario with no expansion in Medicaid eligibility.
Beginning in January 2014, the ACA extends public coverage under Medicaid to adults making below 138 percent of the federal poverty level (FPL). While, this expansion increases hospitals’ public insurance revenue by creating a larger Medicaid coverage pool, it may also mean that some people currently paying for private coverage will drop it and enroll in Medicaid, resulting in lower payments when they receive hospital care.
This brief looks at whether hospitals stand to gain more in revenue under the ACA's Medicaid expansion compared to a scenario with no expansion in Medicaid eligibility.
For each dollar lost from private insurers, expansion increases hospitals' Medicaid reenues by $2.59.
Medicaid expansion lets hospitals use the ACA's new presumptive eligibility option to obtain payment for a significant proportion of the uncompensated care that would remain, even after expansion.
Urban Institute Real Time Policy Analysis
These reports, also called "quick strikes," are a series of timely briefings examining a wide variety health insurance coverage issues in the United States.Learn more about the series
- Opting in to the Medicaid Expansion Under the ACA August 1, 2012