Supporters of the Affordable Care Act have often cast it as a blow against greedy companies in the health-care industry that are more concerned with their bottom line than Americans’ wellbeing. It’s a narrative significantly complicated by health insurance companies’ experience of a “profit spiral” of rising income since ObamaCare went into effect and, now, a new Politico report which finds nonprofit hospitals have made more money and spent less on charity care, defined as “free treatment for low-income patients,” since 2013.
The upshot, as Politico summarizes, is the “top seven hospitals’ combined revenue went up by $4.5 billion per year after the ACA’s coverage expansions kicked in, a 15 percent jump in two years. Meanwhile, their charity care — already less than 2 percent of revenue — fell by almost $150 million per year, a 35 percent plunge over the same period.”
This happened, Politico reasons, because the ACA produced about 20 million new paying customers for hospitals nationwide while maintaining a system of tax exemptions, established for half a century, in which the hospitals pay lower taxes on the condition that they can demonstrate service to their communities, usually through the …read more
Source:: The Week – Business