Tag Archives: Credit Rating
Obamacare repeal plan stokes fears of market collapse
Republicans warned for years that Obamacare would blow up the nation’s individual insurance market. Instead, their own rush to repeal the health care law may be what triggers that death spiral.
GOP lawmakers say they plan to repeal the Affordable Care Act as soon as President-elect Donald Trump takes office, including a transition period of a year or two before it takes effect. That way, they satisfy their base while giving notice to 20 million Obamacare customers that they must find other coverage options.
“The discussion right now about repeal and replacement is making the market very, very nervous,” said Washington Insurance Commissioner Mike Kreidler, a Democrat. “I would not be surprised to see the potential for a stampede to exit the market.”
Even if Congress delays immediate action to kill the health care law, Obamacare insurers would have just a few months to decide whether to stay in the law’s marketplaces for 2018. Deep uncertainty about the Republicans’ Obamacare replacement could drive out those companies, cutting off insurance for, potentially, millions of customers.
“A repeal that kicks the can on replace would put the market in serious jeopardy, and the American people will hold them accountable for the results,” Topher Spiro, who heads health policy at the left-leaning Center for American Progress, said on a call with Obamacare supporters last week.
Uncertainty about Obamacare’s future is occurring against the backdrop of strong demand for coverage. More than 1 million people signed up through HealthCare.gov in the first two weeks of the current enrollment season, including 100,000 who enrolled the day after the election, according to the Department of Health and Human Services. The administration projects that 13.8 million people will participate this season, which ends about two weeks after Trump takes office. Millions more — including young adults on their parents’ policies and those in expanded Medicaid — will also get coverage this cycle.
California Dreamin’ in a post-Trump healthcare world
The consensus among policymakers and observers: Not good.
“At risk is insurance coverage for literally millions of Americans,” said Anthony Wright, executive director of the advocacy group Health Access California.
Jim Lott, who teaches healthcare policy at USC and Cal State Long Beach and was the longtime executive vice president of the Hospital Association of Southern California, noted that even if parts of the law are preserved the way Trump suggests, it would still be imperiled.
“If you don’t have an employer mandate and an individual mandate, the market would self-destruct,” Lott said. “It will create havoc.”
Barcellona, an attorney by training, concurred with Lott. “The law matters and these federal programs are conditioned on the act being implemented in a certain way,” he said.
Barcellona also brought up a consequence that would be utterly disastrous for millions of middle-class Americans: If the ACA is eliminated in the middle of a calendar year, it could put them on the hook for repaying billions of dollars in premium tax credits.
Obamacare defenders vow ‘total war’
http://www.politico.com/story/2016/11/obamacare-defenders-vow-total-war-231164
Shell-shocked Democrats on Capitol Hill are preparing to make a fight for Obamacare their top priority in the opening days of the Trump administration, with leading advocacy groups ready to wage “total war” to defend President Barack Obama’s universal health care program and his domestic policy legacy.
“We’ve got the battle of our lifetime ahead of us,” Ron Pollack, executive director of advocacy group Families USA, said the day after Donald Trump was elected on a pledge to repeal the Affordable Care Act, which now the law that covers 22 million people. “We’re going to have a huge number of organizations from all across the country that will participate in this effort.
The road to repeal is more complex than Trump acknowledged on the campaign trail. The law is baked into the health care system, touching every American’s life and a fifth of the economy.
But with the Republican sweep of both the executive and legislative branches, expectations for big and bold action are high.
California Faces Major Reversal If Trump, Congress Scrap Health Law
California Faces Major Reversal If Trump, Congress Scrap Health Law
California has a lot to lose if President-elect Donald Trump and the Republican-led Congress fulfill their campaign pledge to repeal Obamacare.
The Golden State fully embraced the Affordable Care Act by expanding Medicaid coverage for the poor and creating its own health insurance exchange for about 1.4 million enrollees. Supporters held California up as proof the health law could work as intended.
But now President Barack Obama’s signature law is in serious jeopardy and California officials are left wondering what Republicans in Washington may put in its place.
“There is no doubt that Obamacare is dead,” said Robert Laszewski, a health care consultant and expert on the California insurance market. “The only question is just exactly how Republicans will get rid of it.”
Health policy experts don’t expect Republicans to immediately kick millions of people off their insurance policies. Instead, they predict lawmakers may repeal parts of the law and allow for some transition period for consumers while a replacement plan is put together.
Still, the personal and financial impact for the state could be jarring. The number of uninsured Californians would more than double to 7.5 million people if the Affordable Care Act was repealed, according to a recent study by the Urban Institute.
Researchers also said California stands to lose an estimated $15 billion annually in federal funding for Medicaid expansion and insurance subsidies — more than any other state. That loss of federal money would make it difficult for California to pursue health reform on its own.
CHS selling 17 hospitals in 7 deals
http://www.healthcaredive.com/news/chs-selling-17-hospitals-in-7-deals/429651/
The divestitures of the 17 hospitals follow a previous announcement of the sale of a four-hospital joint venture and an April deal in which CHS spun off 38 of its hospitals into a separate entity–Quorum Health Corp.
The system has previously indicated it may sell up to 30 of its hospitals in a strategy to streamline its operation to focus on its regional hospital hubs, and that the company might even put itself on the block.
The company has been struggling to bring down its debt of $15 billion, which has also involved the sale of its majority stake in its home health division. CHS has been in trouble since acquiring Health Management Associates in 2014 that owned 23 hospitals and some clinics in Florida.
Just last week, a grim preview of its third quarter earnings resulted in CHS’ common stock dropping from $10.03 at the close of business Wednesday to $5.08 at the close of business Thursday. This week its finalized numbers indicated a third quarter net loss of $79 million compared to a net income of $52 million for the quarter last year.
5 hospitals with strong finances
http://www.beckershospitalreview.com/finance/5-hospitals-with-strong-finances-october20.html
Here are five hospitals and health systems with strong operational metrics and solid financial positions based on recent reports from Moody’s Investors Service, Fitch Ratings and S&P Global Ratings.
Note: This is not an exhaustive list. Health system names were compiled from recent credit rating reports. Systems are listed in alphabetical order.
1. University of Chicago Medical Center has an “Aa3” rating and stable outlook with Moody’s. The hospital’s cash flow is growing and its market share is increasing. Moody’s expects UCMC to continue to produce improved cash flow margins and maintain its solid liquidity position.
2. Carolinas HealthCare System has an “Aa3” rating and stable outlook with Moody’s. The Charlotte, N.C.-based system has solid operating performance and cash flow diversity, according to Moody’s.
3. Parkview Health System has an “Aa3” rating and stable outlook with Moody’s. The Fort Wayne, Ind.-based system has solid financial performance and strong debt service coverage. Moody’s expects Parkview’s solid operating performance to continue.
4. Memorial Healthcare System has an “AA” rating and stable outlook with S&P. The Hollywood, Fla.-based system has strong cash flow, high unrestricted reserves and light pro forma debt. S&P expects MHS to maintain its solid enterprise profile and continue to generate strong earnings and cash flow.
5. Banner Health has an “AA-” rating and stable outlook with Fitch and an “AA-” rating and stable outlook with S&P. The Phoenix-based system has strong enterprise profile and good revenue diversity across its hospitals, according to S&P.
17 recent hospital outlook and credit rating actions
5 hospitals with strong finances
http://www.beckershospitalreview.com/finance/5-hospitals-with-strong-finances-september22.html
Here are five hospitals and health systems with strong operational metrics and solid financial positions based on recent reports from Moody’s Investors Service, Fitch Ratings and S&P Global Ratings.
Note: This is not an exhaustive list. Health system names were compiled from recent credit rating reports. Systems are listed in alphabetical order.
HENRY KOTULA 