Washington D.C.- A recent legislative action is poised to reverse gains made in healthcare coverage, notably impacting low-income individuals and potentially straining hospital finances, according to analysis of the “One Big Beautiful Bill Act.”
The Affordable Care Act (ACA) has been credited with expanding access to affordable healthcare, leading to positive health outcomes and ensuring hospitals are reimbursed for services rendered. Studies indicate that states expanding Medicaid have seen fewer uninsured patients, and this expansion is linked to improved health. While the ACA may not eliminate the need for subsidies,it has demonstrably reduced it.
Though, the recently enacted “One Big Beautiful Bill Act” is projected to diminish ACA coverage gains, disproportionately affecting the lowest-income beneficiaries. This legislation is expected to cut healthcare spending by approximately one trillion dollars over the next decade, largely through changes to Medicaid. Policies such as work requirements, which can lead to confusion and unintended coverage losses, are a key component of these cuts. consequently, hospitals may face reduced payments and an increase in uninsured patients. This situation creates a challenging environment for hospitals serving a high proportion of low-income individuals, potentially necessitating complex financial workarounds to maintain operations. The ongoing need for such measures suggests that legal challenges, similar to the case of Advocate Christ, may continue to reach the Supreme court.
This essay is part of a series,titled “The Supreme Court’s 2024-2025 Regulatory term.”
