Jackson Hewitt, a company specializing in tax services, released a report last month that said states opting out of the ACA face tax repercussions. Employers with 50 or more employees, according to the report, will be exposed to increased shared responsibility payments to the tune of up to $1.3 billion per year in the 22 states that have opposed or are leaning toward opposing the expansion under ACA.
Another study from the Missouri Hospital Association says that without Medicaid reform, the cost of caring for the state’s uninsured will continue to skyrocket. The cost, estimated to hit $3.5 billion annually in six years, will be paid by businesses and individuals with health insurance.
Herb Kuhn, president and CEO of the MHA, said hospitals will experience an estimated $4.2 billion in cuts between now and 2020, and without the additional Medicaid coverage, hospitals will continue to care for uninsured residents.
Various reductions in hospital payments were made in the ACA, with the expectation that hospitals “would see new revenue from patients newly covered by Medicaid and those purchasing insurance through a health insurance exchange,” according to the MHA. President Barack Obama proposed a budget earlier this month that would delay those cuts.