The U.S. Department of Health and Human Services projects that the Affordable Care Act will save hospitals $5.7 billion in uncompensated care costs this year.
However, states that have expanded their Medicaid programs will see the bulk of the savings — about 74 percent, or $4.2 billion.
Tennessee is among the 22 states that have so far opted out of expanding their Medicaid programs. Savings in the states that have opted out of Medicaid expansion is projected to comprise about $1.5 billion — about 25 percent of the projected savings.
“Hospitals have long been on the front lines of caring for the uninsured, who often cannot pay the full costs of their care,” HHS Secretary Sylvia Burwell said in a statement. “Today’s news is good for families, businesses and taxpayers alike.”
Oct. 1 marks the one-year anniversary since the launch of the ACA’s insurance exchanges. During the first open enrollment period 7.3 million people signed up for marketplace plans and another 8 million gained coverage through Medicaid or the Children’s Health Insurance Program.
Next year, HHS is projecting a 25 percent increase in the total number of issuers selling plans on the exchange.
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Brianne covers legal affairs, health care, life sciences, animal health and biosciences.
