Tradeoffs What Cuts to Medicaid and Obamacare Could Mean for Hospitals, Insurers and You
May 22, 2025
Jonathan Gruber, Ford Professor of Economics at MIT, dives into the potential fallout of proposed cuts to Medicaid and Obamacare. He reveals how these changes might leave millions without coverage and strain hospitals with increased uncompensated care. The discussion emphasizes the financial ramifications for insurers and consumers alike, including rising premiums and accessibility issues. Gruber also addresses the exploitation of Medicaid funding loopholes and warns of broader public health risks if these vital programs are compromised.
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Uninsured Impact on Hospitals
- When millions more uninsured people use hospitals, uncompensated care will increase significantly.
- This impacts safety net hospitals most, potentially leading to closures affecting community care.
Cost-Shifting Uncertainty
- Uncompensated care going up likely raises costs for insured people, but the degree is unclear.
- Research on how much cost-shifting happens to private payers is limited, leading to debate.
Insurance Market Risks
- Reducing Obamacare subsidies pushes healthier people away, raising premiums for remaining buyers.
- Some insurers may exit exchanges, further diminishing competition and increasing premiums.