State helping hospitals model payer-shift risks as exchange, Medicaid changes loom

Feb 20, 2025

The department told senators it's working with the Hospital Association to model how flows among uninsured, private, exchange and Medicaid payers could create net winners or losers for hospitals; estimates hinge on how many privately insured drop to Medicaid or the exchange.

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Director Tony Keck said the department is working with the Hospital Association to model scenarios that could produce either net financial gains or losses for individual hospitals depending on how patients transition among payer buckets after exchanges and subsidies begin. Keck outlined the central concern: if privately insured patients move into lower-paying exchange or Medicaid products, hospitals could see revenue declines; conversely, moving uninsured patients into insured buckets could improve hospital revenues.

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