Hospitals report falling costs due to more consumers having health insurance coverage
New Mexico hospitals are reporting seeing lower costs in providing consumers medical care, even if they do not have health insurance coverage. According to a report from the Legislative Finance Committee, this is due to the expansion of the state’s Medicaid program through the Affordable Care Act. This has allowed more people to receive the medical care they need at relatively lower costs. This has had a positive financial impact for hospitals, as they are spending less money on care.
Uninsured consumers had been a financial burden, but expansion of Medicaid has alleviated this issue
In the past, hospital executives have noted that their major concern was the rising cost of providing medical care for those without health insurance coverage. The expansion of Medicaid, however, has lead to a reduction in the state’s uninsured population, falling from 18% in 2013 to 13% this year. This has had an effect on uncompensated care, as more consumers now have health insurance coverage. As more consumers seek medical care, hospitals are finding that these consumers have the coverage that they need, covering the costs associated with medical care.
Uncompensated care costs have fallen by an average of 21% throughout the country
The report from the Legislative Finance Committee has found that uncompensated care costs have dropped by 21% throughout the nation, with New Mexico seeing a 26% drop in uncompensated care costs. This has occurred in states that have opted to expand their Medicaid coverage, as this has allowed more consumers to receive health insurance coverage. The Affordable Care Act has also lead to an increase in the reimbursements for Medicaid patients who stay overnight at hospitals. In New Mexico, these hospitals have received $142 million in reimbursements for their patients. This is expected to grow by 10% in the coming year.
Affordable Care Act brings health insurance to millions of consumers
While the Affordable Care Act has been the subject of controversy since its passage in 2010, it has successfully ensured that millions of consumers have received access to health insurance coverage. In the coming year, many people are expected to gain access to medical care, largely due to more states choosing to expand their Medicaid programs.