Federal Subsidies for Medical Care of Poor in Jeopardy

Federal subsidies to hospitals and physicians who care for the poor are in jeopardy, as many states are refusing to expand Medicaid, under the Affordable Care Act. Igor Cornelsen (tripod.com) knows that Florida is one state that is facing a problem. States who fail to expand their Medicaid programs can no longer use uncompensated care pools to pay costs that would be covered by Medicaid.

This is to guarantee good quality service to low income people. Hospitals serving low-income neighborhoods operate at negative profit margins. Medicaid pays much less than either Medicare or private insurance companies. Go to
http://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2015/5/05/federal-money-for-charity-care-at-risk-in-several-states/ for more details.

The Affordable Care Act pushes for reductions in supplemental funding, like Florida’s plan, which was supposed to go into effect in 2014.

Five states who expanded Medicaid including California, New Mexico, Arizona, Hawaii and Massachusetts, will lose supplemental funding, that the states need in addition to Medicaid expansion.

Florida filed a lawsuit against the federal government last week, stating that it is illegal for the government to coerce states to expand Medicaid, by threatening a reduction of funds. More to come.