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Affordable Care Act credited with $7.4 billion drop in uncompensated care
Modern Healthcare

Hospitals’ uncompensated-care costs in Medicaid expansion states were reduced by $5 billion in 2014, according to an HHS report published Monday, the fifth anniversary of the Affordable Care Act.

The costs of uncompensated care declined $2.4 billion in states that did not expand the program, resulting in a total drop of $7.4 billion, down 21% from 2013. In these states, the uninsured populations dropped as some residents gained insurance through the law’s insurance exchanges and others who were already eligible for Medicaid enrolled as a result of the intense enrollment efforts tied to the coverage expansions, a dynamic known as the woodwork effect.