Early evidence shows a dramatic drop in uncompensated care for hospitals in states that expanded Medicaid, according to a report released earlier this month by the Colorado Hospital Association. But it's unclear whether the savings will be enough to offset cuts from the Affordable Care Act (ACA).
The study, which provides the most comprehensive view yet of Medicaid expansion's impact on uncompensated care, analyzed data from 465 hospitals in 30 states in the first four months of Medicaid expansion. It found that unpaid care decreased by 30 percent in expansion states and remained essentially unchanged in non-expansion states. The report links an enrollment surge in expansion states to not only the reduction in uncompensated care but also the 25-percent decrease in people paying out of pocket.
Uncompensated care cost the country about $46 billion in 2012, according to the American Hospital Association. It's been increasing the past several decades and risen at an even faster rate the last ten years.