Texas Hospital Association

Supreme Court Rules on Health Care Reform Law; Questions Remain

FOR IMMEDIATE RELEASE
FOR MORE INFORMATION, CONTACT:

Lance Lunsford
Email: llunsford@tha.org
Twitter: @texashospitals
512/465-1052 or mobile 512/298-7371

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(AUSTIN - June 28, 2012) – After two years of intense debate about the constitutionality of the health care reform law known as the Patient Protection and Affordable Care Act, the U.S. Supreme Court today upheld the individual mandate to purchase insurance or pay a tax.

The decision benchmarks a significant milestone taken to improve access to affordable health care, but uncertainty remains around how the state will address the expansion of Medicaid. The U.S. Supreme Court ruled that the Medicaid expansion is constitutional; however, states will not lose their current Medicaid funding if they choose not to expand.
 
While PPACA will certainly help reduce Texas’ large uninsured population, almost half were expected to become enrolled in the Medicaid program. Earlier estimates were that 4.1 million Texans would become insured because of PPACA, but that number could drastically fall if Texas chooses not to expand Medicaid and low income individuals cannot afford to buy private insurance.

Under PPACA, the federal government will pay 100 percent of the costs for those who are newly eligible for Medicaid for 2014 through 2016. In 2017, the federal share begins decreasing but never falls below 90 percent. More than $112 billion in federal funds could be available to Texas over the next 10 years for the newly eligible.

“Texas hospitals recognize there are concerns with expanding the Medicaid population, but given the state’s high number of uninsured, all options for gaining insurance coverage must be closely considered. Under PPACA, a significant number of low income individuals could gain insurance without any cost to the state of Texas for several years. Without the Medicaid expansion, many will remain uninsured, shifting costs to the insured and increasing uncompensated care to health care providers,” said Dan Stultz, M.D., FACP, FACHE, THA president/chief executive officer.

“The law was never meant to fix all the problems facing the health care system,” Stultz said. “Texas hospitals look forward to a continued discussion on how to improve the effects of the law for patients, families and communities.”

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About Texas Hospital Association
Founded in 1930, the Texas Hospital Association is the leadership organization and principal advocate for the state’s hospitals and health care systems. Based in Austin, THA enhances its members’ abilities to improve accessibility, quality and cost-effectiveness of health care for all Texans. One of the largest hospital associations in the country, THA represents more than 85 percent of the state’s acute-care hospitals and health care systems, which employ more than 369,000 health care professionals statewide. Learn more about THA at www.tha.org or follow THA on Twitter at http://twitter.com/texashospitals
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Subsidiaries and Affiliates

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Texas Hospital Insurance Exchange

Texas Hospital Association Foundation

Texas Healthcare Trustees

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According to Texas Government Code 305.027, portions of this material may be considered “legislative advertising.” Authorization for its publication is made by John Hawkins, Texas Hospital Association, 1108 Lavaca, Suite 700, Austin, Texas, 78701-2180.