This week the Minnesota Hospital Association (MHA) announced that its member hospitals paid $226 million in “charity care” last year. The MHA is referring to instances when uninsured and underinsured patients are unable to pay their hospital bills, and the hospitals get stuck with the expenses.
While the term “charity care” is used by hospitals, hospitals don’t end up bearing the whole burden. They make up for the bills substantially by charging more to their insured patients, and insurance companies subsequently shift these higher costs to insurance premium payers.
This post isn’t meant to be a criticism of either the hospitals or the insurers. They would go out of business if they couldn’t shift costs.
But it is meant to be a criticism of Obamacare obstructionists. The MHA numbers are a reminder that those who have been aggressively blocking efforts to reduce the number of uninsured and underinsured through Obamacare are responsible for maintaining what is akin to an enormous annual tax on premium payers. An Anti-Obamacare Tax.
Given that a fully implemented Obamacare is predicted to reduce the uninsured rate from today’s 50.7 million people to about 18.7 million, and the number of underinsured people by about 70%, leaders opposing Obamacare in Congress, state legislatures and federal courts are effectively blocking the elimination of a huge annual burden on American households. If the anti-Obamacare obstructionists win, we all keep paying this Anti-Obamacare Tax.
And it’s not a small tax. In Ramsey County, taxpayers are up in arms over a proposed $10 million per year tax for the Vikings stadium. This hidden Anti-Obamacare Tax is much more painful. The Center for American Progress finds “on average, 8 percent of families’ 2009 health care premiums—approximately $1,100 a year—is due to our broken system that fails to cover the uninsured.”