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Will health care coverage cause hospitals to close down?

One of the major issues in Kentucky today is whether the enactment of the Affordable Care Act (ACA) will do more harm than good? Rand Paul, who is currently one of Kentucky’s senators, does not support the Affordable Care Act. He alleges that the ACA might cause some of Kentucky’s hospitals to close down as reported by USA Today in a November 7, 2013 article.

The senator has a bill pending, which if enacted, “would repeal the Medicaid expansion.”  Since the health care coverage would be provided through Medicaid, this would only encourage more people to sign up for Medicaid, and if they are approved for it, then the government would have the responsibility of funding these costs. In addition, since these hospitals will not be making money from the uninsured, then this might cause some hospitals to close down. While Senator Paul feels that uninsured people should get health care coverage, he is concerned about the success of the hospitals.

However, others such as health care supporters disagree with him. They feel that the medical coverage would allow more people to go to hospitals to obtain medical treatment and services that might save some lives.  Also, the Act  will reduce the “federal Medicaid Disproportionate Share Hospital (DSH) program by $18.1 billion over seven years, beginning in fiscal year 2014, to help pay for the cost of expanding Medicaid.” This was based on the theory that every state would agree to the ACA, however, states are the ones who chose whether or not to adopt the ACA.

If you are in a difficult financial situation, whether it is due to foreclosure or credit card debt, and you are considering bankruptcy, then you should contact an attorney. Jayson Lutzky is a lawyer with over 30 years of experience representing clients in New York. Mr. Lutzky offers free in office consultations on matters related to personal bankruptcies. Call 718-329-9500 to set up an appointment. Visit www.MyNewYorkCityLawyer.com for more information.

Note that laws regarding the ACA have changed recently.

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