How a US Supreme Court case could impact hospital spending

There would be an estimated 8.2 million more uninsured people if the U.S. Supreme Court decides subsidies under the Patient Protection and Affordable Care Act are only available to people in states that established their own exchanges, according to a new study from the Urban Institute.

The U.S. Supreme Court is set to hear King v. Burwell March 4, the case that will determine whether people in all states will receive health insurance subsidies under the PPACA.

The 8.2 million-estimation includes 6.3 million people losing tax credits for marketplace coverage, 1.2 million people purchasing nongroup coverage without tax credits and 445,000 enrolled in Medicaid or the Children's Health Insurance Program.

The Urban Institute also estimated that total hospital spending would decrease by at least $6.3 billion if the high court decides subsidies under the PPACA are only available to people in states that established their own exchanges. However, if recent patterns of financing for uncompensated care do not continue, an additional $3.8 billion of hospital spending would be at risk, according to the study.

 

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