Ohio hospitals stand to lose billions under the proposed federal budget, risking closures and as well as spiking health care prices.
Ohio hospitals could see more than $9 billion in decreased health care spending over the next decade if an estimated 10 million Americans lose insurance coverage under the reconciliation bill, the Robert Wood Johnson Foundation, a health research nonprofit, detailed in a new state-by-state analysis.
That newly uninsured population would come primarily from changes to Medicaid.
More uninsured people means they’re likely delaying or simply not seeking health care, and if they are, it’s in an emergency situation they can’t pay for, explained Katherine Hempstead a senior policy analyst at the foundation. On top of losing the regular revenue, hospitals will eat the costs of the uncompensated care they provide, which is likely to be more expensive due to an emergency or delayed care for an ongoing condition.
Less money for hospitals also means a higher risk of closure. Already, hundreds of hospitals in the U.S. are in danger of closing, the vast majority of which are rural hospitals serving often poorer, older and sicker populations than their urban counterparts.
Rural hospitals also often have a higher rate of Medicaid recipients than hospitals in urban areas, meaning any cuts to Medicaid would disproportionately hurt their ability to stay open.
If they do stay open, Hampstead noted that commercial payers will likely see their health care costs increase to make up for lost revenue.
Even more hospital losses possible
The losses don’t stop with the reconciliation bill. The foundation also points out that unless Congress acts and renews what are known as enhanced premium tax credits for those in the Affordable Care Act marketplace, Ohio hospitals could lose another $2.7 billion over the next ten years.
These enhanced subsidies build on already existing tax credits by increasing the amount of insurance premium assistance that lower income individuals received, making health care more affordable.
Without these subsidies in place, a KFF Health News analysis found that on average, health insurance premiums for ACA enrollees would have been 93% higher in 2024. The average Ohioan would have had between a 50% and 100% increase on average.
Between these subsidies expiring and the Medicaid changes, around 16 million people are expected to lose insurance coverage.
What do Ohio hospitals have to say?
OhioHealth, the Ohio State University Wexner Medical Center and Nationwide Children’s Hospital said in emailed statements that they are closely monitoring what’s happening in Washington regarding Medicaid and reiterated their commitment to patient care.
Mount Carmel deferred their response on federal changes to the Ohio Hospital Association.
“It is imperative that policymakers support our most vulnerable patients by ensuring they have access to necessary health care services,” a spokesperson for the association said in a statement. “Hospitals need to have sustainable, predictable, and adequate Medicaid funding to provide care. With many Ohio hospitals already operating on razor thin margins… this would be a devastating impact to health care access and services throughout the state if these cuts were to be implemented.”
Adena Health, a system primarily serving rural Ohio populations, said in an emailed statement that “at a time when insurance companies continue to post record profits while health systems face increased costs and lower reimbursement rates, we join our colleagues in urging lawmakers to pursue responsible, targeted reforms that improve efficiency and reduce waste, but not at the expense of care for those who need it most.”
Medical business and health care reporter Samantha Hendrickson can be reached at shendrickson@dispatch.com
This article originally appeared on The Columbus Dispatch: Ohio hospitals could lose billions under Trump’s ‘Big Beautiful Bill,’ risking closures
Reporting by Samantha Hendrickson, Columbus Dispatch / The Columbus Dispatch
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