Report: Health Care Providers Could Lose $1.7 Trillion In Revenue With ACA Repeal

FILE - This March 1, 2014 file photo shows part of the website for HealthCare.gov, seen in Washington. President Barack Obama’s health care law has become a tale of two Americas. States that fully embraced the law... FILE - This March 1, 2014 file photo shows part of the website for HealthCare.gov, seen in Washington. President Barack Obama’s health care law has become a tale of two Americas. States that fully embraced the law’s coverage expansion are experiencing a significant drop in the share of their residents who remain uninsured, according to an extensive new poll released Tuesday. States whose leaders still object to “Obamacare” are seeing much less change. The Gallup-Healthways Well-Being Index, cumulatively based on tens of thousands of interviews, found a drop of 4 percentage points in the share of uninsured residents for states that adopted the law’s Medicaid expansion and either built or helped run their own online insurance markets. (AP Photo/Jon Elswick, File) MORE LESS
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Health care providers face a staggering loss of revenue if Republicans repeal Obamacare as promised, according to an Urban Institute report released Thursday.

The report found that health care spending by public and private health insurers would decline by $1.7 trillion between 2019 and 2028 if the health care legislation is repealed.

The Urban Institute report assumed that the Obamacare repeal measure in the new Congress will be similar to the one passed by both houses of Congress and vetoed last year by President Obama.

Like other health care policy experts, Urban Institute researchers determined Obamacare repeal would cause the private individual health insurance market to unravel as healthy people are freed of the ACA’s individual mandate to obtain insurance and drop their plans, leaving a sicker pool of customers that would drive up premiums. The report predicts that repeal will create an additional 29.8 million uninsured people.

The newly uninsured will be less likely to seek medical care, according to the report, but when they do will be increasingly reliant on what’s known as uncompensated care, which is financed by government entities and providers offering free or reduced-price care. Yet federal funding for uncompensated care through Medicaid is not expected to increase substantially in the repeal bill still to be put forth by the GOP-controlled Congress. This forces providers, which will already be losing billions of dollars in revenue per year by the Urban Institute’s projections, to carry the additional financial burden of offering care to the uninsured.

The report found that insurer and household spending on hospital and physician care would drop by $59.1 billion and $20 billion respectively in 2019 alone, putting health care providers in a difficult financial fix.

Major health care groups like the American Medical Association are urging Congress not to move forward with their plan for repealing Obamacare until a clear replacement plan is in place.

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Notable Replies

  1. That is a staggering loss, but I’ve no doubts that Republicans will insist these are made up numbers and plunge ahead into the abyss.

  2. Then they should object, and tell the GOP in no uncertain terms that they will lose their jobs in 2018.

  3. Avatar for caltg caltg says:

    Isn’t it interesting that the Republicans are hell-bent on repealing the Affordable Care Act no matter who it hurts and how much it cost, all because they cannot stand the idea that America’s first black President will leave a legacy of success for millions of people. Their racism knows no bounds.

  4. Trump: More money for all of us. I encourage all Americans to get rid of having Health Insurance. Its free money and its all yours. My ideas are just Grrrrraaaaaaaate.

  5. I just watched Bill O’Reilly segue from “them black folks is all getting violent against the whites” to " there’s a civility problem in this country."

    I think I need to go to the ER…

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