Hospital association says state will lose under health care reform

The Kentucky Hospital Association said in a report Monday that Kentucky hospitals will lose $1.2 billion in revenues in the next 10 years because of health care reform.

Because Kentucky has one of the lowest income levels in the nation, the majority of uninsured Kentuckians will be covered under Medicaid rather than private health insurance, leaving the state with 25 percent of its population on Medicaid, the report said. Medicaid is jointly financed by federal and state tax dollars.

"Unfortunately, Medicaid only reimburses hospitals 85 percent of their actual costs ... for Medicaid patients," the report said.

The report also said that Kentucky hospitals will be losing $3.4 billion in Medicare payments, which will outweigh the additional expected revenue from the newly insured.