January 28, 2025
The proposed healthcare policy changes stemming from President Donald Trump's new administration that aim to limit spending could lead to an increase in Americans without insurance coverage. An article in today's Modern Healthcare reported that in response, "Health systems are looking to lean more heavily on commercially insured services, boost employer-led contracting agreements, and add staff to help patients find insurance coverage."
For the most financially vulnerable hospitals, these are not viable options, and they may not be able to sustain this increase in the uninsured population. Michael Young, CEO of Temple University Health System, a safety net health system in Philadelphia, added, "Hospitals will be at risk of closing and certainly along the way burning the furniture to keep the house warm by having to cut services."
The Trump Administration is looking to support tying Medicaid coverage to employment as House Republicans drafted a list of legislative changes this month that would cut "trillions" of dollars from federal programs over a ten-year period to pay for tax cuts and stricter immigration oversight.
The article added, "Health system leaders highlighted several of the most concerning proposals from Congress, including instituting Medicaid work requirements, eliminating enhanced federal payments for states that expanded Medicaid coverage, getting rid of supplemental Medicaid funding designed to bridge the gap between Medicaid reimbursement and treatment costs, and axing Medicaid coverage for immigrants lacking permanent legal status seeking emergency care."
