Study: Medicaid Work Requirements Could Weaken Hospitals’ Finances

Hospitals in states that impose Medicaid work requirements could see reduced Medicaid revenues and operating margins and increased uncompensated care costs, according to a recent study by the Commonwealth Fund. The analysis extrapolates and applies to a hospital finance simulation model early results from Arkansas’ experience as the first state to adopt a work requirement. The study estimates the potential impact on hospitals in 13 states that have requested or received approval to implement Section 1115 demonstration projects requiring certain non-disabled adults to work a certain number of hours or participate in training or community service to maintain coverage. The specific impact would vary depending on the state’s payer mix, program design and the portion of enrollees who become uninsured, the authors said.

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