The current draft of the Build Back Better Act (BBBA) includes provisions that would extend enhanced ACA subsidies to people below 100 percent of the federal poverty limit in the 12 states that have not expanded Medicaid. These provisions are expected to extend health insurance coverage to millions of people and to lower the cost of health care for many families. Analysis compares these provisions to provisions that cut Medicaid disproportionate share hospital allotments to assess the BBBA’s overall impact on hospitals in nonexpansion states.
Though only a portion of the total increased federal spending under the Build Back Better Act provisions would flow to hospitals, researchers conclude that in the years during which additional subsidies would be provided, hospitals would be substantially better off overall than they are under current law, even after proposed Medicaid DSH cuts are taken into account.
The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Visit the Urban Institute Health Policy Center for more information specific to staff and recent research.
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