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Moody’s: Long-term ACA impact on nonprofit hospitals still unknown


Moody’s Investors Service, the financial-ratings company, says that the long-term impact of the health-insurance exchanges set up under the Affordable Care Act remains uncertain. But it says that developments over the next  two years will probably clarify the ACA’s credit implications for nonprofit and government-owned hospitals.

As Moody’s notes, many private-sector payers have lost money selling individual insurance products on the exchanges, leading some to decide to pull back from some regional markets starting next year.

The firm says this  is bad for the hospitals because it means fewer coverage options for patients and probably a higher uninsured rate.

Further, high-deductible  insurance plans sold on the exchanges could also hurt nonprofit hospitals’ finances.

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