Dive Brief:
- Hospitals in the state of Kentucky, which is widely known for embracing the Affordable Care Act, are now suffering from billions of dollars in payment cuts, according to a high-profile Kentucky Hospital Association report covered by USA TODAY.
- The payment cuts have already led to layoffs and discontinuation of some services, the paper reports.
- State hospitals say they are concerned for their financial well-being; some say they may have to close their doors.
Dive Insight:
In a report titled "Code Blue" that was released on Friday, KHA said that under the Affordable Care Act, Kentucky hospitals will lose more money in payment cuts than they will gain in revenue from expanded coverage.
According to the KHA, one of the reasons the hospitals are experiencing a net loss is that around 75% of those who have acquired insurance coverage under the ACA signed up for Medicaid, which pays hospitals less than what it costs them to treat patients. The Congressional Budget Office had initially anticipated that around 50% of the newly-insured in each state would sign up for private insurance.