Medicaid Work Mandates Threaten Hospital Operating Margins

A recent study published by The Commonwealth Fund found that work mandates for Medicaid beneficiaries in states that expanded Medicaid eligibility under the Affordable Care Act (ACA) will have significant adverse financial impacts on hospitals, particularly safety net institutions. Specifically, individuals who fail to comply with work obligations risk losing Medicaid coverage, which could drastically increase the percentage of patients who are uninsured and erode already thin hospital operating margins.