ACA Marketplace Lapses in Coverage Spell Financial Trouble for Many Hospitals

A new Fitch Ratings report foreshadows that many hospitals in states that did not expand Medicaid under the Affordable Care Act (ACA) will likely see a surge of uninsured patients. This is because, starting Jan. 1, 2026, enhanced premium tax credits expired, making Marketplace plans no longer financially feasible for such individuals. Limited Medicaid eligibility and lack of safety-net and other government subsidized backstop programs in many of these states is expected to exacerbate the problem.