Medicaid Ruling Creates Major Budgeting Problem

The Supreme Court's decision to strike down expanded Medicaid coverage puts healthcare CFOs in a budget planning pickle. Medicaid is now "a big question mark." Financial leaders don't know how many uninsured people will join plans or how charity care and bad debt will be influenced.

2 comments on "Medicaid Ruling Creates Major Budgeting Problem"
David Andrews (7/3/2012 at 9:32 AM)

This article makes a good point. Michigan is faced with covering another 1 million people under expanded Medicaid. I suppose this could be done if the prisons are closed and school funding is cut. Hospitals are covering these people now as a write-off very expensively with no preventive health. Will hospitals start paying the Medicaid premiums to offset the write-offs?
S Harbaugh (7/2/2012 at 3:07 PM)

I am completely amazed that we have so many healthcare "leaders" looking at the issue of Obamacare from a completely myopic, selfish viewpoint of how their individual organizations will benefit or not benefit from the law! What about the concept of Constitutional limitations on federal power? What about the loss of individual liberty? At the end of the day, hospitals are going to saddled with even more federal regulations, reporting requirements, and mandates. No state that is governed by competent leaders is going to willingly sign-up for an expansion of Medicaid when they cannot accurately forecast the increased cost, in addition to having to pay 90% of these costs after 3 years. Rather than being homers for the current administration and not wanting to rock the boat, the AMA and HFMA might want to re-focus their energies on standing up for what is right, rather than for what is expedient.


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