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New Report Shows Medicaid Shortfalls Grew by More Than 50 Percent after Expansion

Naples, FL — new report from the Foundation for Government Accountability (FGA) shows that hospitals in states that have expanded Medicaid through ObamaCare are suffering significant financial losses. Altogether, hospitals’ Medicaid shortfalls grew by nearly $5 billion after Medicaid expansion.

Despite claims from proponents that Medicaid expansion would be a boon to hospitals, the opposite has proven true. Instead of seeing financial salvation, hospitals’ struggles in Medicaid expansion states have persisted, or even accelerated. This is due in large part to an increased load of patients on which hospitals reportedly lose money, and a shifting of patients from private insurance to Medicaid. Medicaid pays hospitals roughly 60 percent of what private insurance pays, resulting in financial losses for every new Medicaid enrollee shifted out of private coverage.

The paper predicts that hospitals’ Medicaid shortfalls in non-expansion states could grow by another $3 billion if expansion was pursued—equivalent to nearly 53,000 lost hospital jobs.

“Despite being touted as the cure for hospital financial woes, ObamaCare’s Medicaid expansion has only driven hospitals deeper into debt and cost tens of thousands of jobs,” said Hayden Dublois, research analyst at FGA and the paper’s co-author. “The simple truth is that Medicaid losses more than outweigh any savings from expansion. If states are looking to save their local hospitals, they must look elsewhere. Medicaid expansion is not the answer.”

Read the full report here.


The Foundation for Government Accountability is a non-profit, multi-state think tank that specializes in health care, welfare, and work reform. To learn more, visit

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