Obamacare replacement bill endangers hospital finances and ratings, agencies say
Legislation that dismantles the Affordable Care Act and passed through two key House committees last week would hurt hospitals financially and possibly lead to debt downgrades, according to Moody’s Investors Service and S&P Global Ratings. The bill relies on per capita Medicaid caps and tax credits instead of mandates for individual insurance. The House GOP bill to repeal and replace Obamacare is likely to leave more older and sicker Americans unable to afford insurance than coax younger and healthier people to buy coverage, according to S&P.
Overall, the legislation “would reduce the number of people with health insurance and increase bad debt and uncompensated care costs,” by freezing Medicaid expansion in 2020, Moody’s said.