The GOP tax bill that awaits President Donald Trump's signature will hurt nonprofit hospitals, according to a report just issued by the investors' service Moody's.
The bill does two things to damage the hospitals, according to the report.
Most significantly, it will repeal the mandate that every individual have health insurance. That will lead to more patients who show up and can't pay. Nonprofit hospitals, already under siege in rural areas from economic stress, will take the brunt of the millions of uninsured patients.
In addition, the bill will take away some of the tax advantages that nonprofits had in refunding debt. That means that when hospitals are out looking to borrow money, lenders will be less interested and may charge the hospitals more interest. Long story short, hospitals will lose more cash.
Moody’s is one of the chief guides in the corporate world for those who invest.
Repealing the individual mandate from the Affordable Care Act is a long-held goal of Republicans. Indeed, insurance costs have skyrocketed for people above the middle-class level and many chafe at having to buy coverage. Conservatives blame the ACA, also known as Obamacare. Liberals blame Republicans for sabotaging the ACA and preventing fixes, and they blame the rising cost of healthcare itself.
Analysts, from nonpartisan government offices to business forecasters, agree that millions more Americans will wind up uninsured as a result of repealing the mandate. One federal commission predicts 13 million.
They also agree that the ones who turn out to need medical help will simply show up at the hospital anyway, where they will be treated and not be able to pay.
Hospitals are deeply worried.
“Without a doubt, repealing that portion of the Affordable Care Act, the individual insurance mandate, will increase the number of uninsured patients in Georgia,” said Ethan James, executive vice president of external affairs for the Georgia Hospital Association. “There was no attempt made at a ‘replacement’ for this portion of ObamaCare…only a repeal. This will have a damaging effect on the health of our state as a whole.”
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