The American Hospital Association urged the Senate Thursday not to make the planned reductions to Medicaid spending that were included in the House bill to repeal and replace Obamacare.
The group, in a letter to the Senate Finance Commitee, said it was particularly concerned about how the House-passed bill, the American Health Care Act, calls for restructuring the Medicaid program. It would phase out Obamacare’s Medicaid expansion beginning in 2020 and allow states to choose whether to change to a per-capita model or a block grant. That would result in a reduction in federal spending of more than $800 billion over a decade. If hospitals are unable to continue billing Medicaid at the same level, they would need to provide more uncompensated care, and people without health insurance tend to delay medical appointments until they need emergency treatment.
The group, made up of 5,000 members, said the main priority was for people not to lose coverage.
“We believe that any legislation needs to be reviewed through this lens, and carefully evaluated regarding its impact on both individuals and the ability of hospitals and health systems – which are the backbone of the nation’s healthcare safety net – to care for all who walk through our doors,” the group wrote.
The association suggested, however, that states could implement the program in a more flexible way, noting that Medicaid reimbursement is low.
The Senate is writing its own Obamacare repeal bill and is taking input from industry groups including hospitals and health insurers. The American Hospital Association said other portions of the bill that need to be changed include the provisions for tax credits, which it said were too low. Allowing states to waive Obamacare insurance mandates, they wrote, was a provision “the hospital field cannot support including in final legislation.”
