Maryland Hospital Association Urges Cardin, Van Hollen to Oppose Republican Health Care Plan

June 23, 2017

Contact: Sue Walitsky (Cardin) 202-224-4524/Tim Zink 410-962-4436

Ian Jannetta (Van Hollen) 202-228-0672

Maryland Hospital Association Urges Cardin, Van Hollen to Oppose Republican Health Care Plan

WASHINGTON - Today, U.S. Senators Ben Cardin and Chris Van Hollen (both D-Md.) released the following letter from the Maryland Hospital Association, which strongly urges the Senators to oppose the Republican health care plan and specifically cites the damaging cuts to Medicaid.

"As the backbone of our nation's health safety net, Maryland's hospitals and health systems believe it's vital that coverage be protected, particularly for our most vulnerable. Please protect the health of hundreds of thousands of Marylanders by preserving their coverage, and reject any legislation that would sacrifice coverage for a budgetary or political victory," writes President and CEO Carmela Coyle.

The Maryland Hospital Association letter details the cuts in the House Republican bill that has been scored by the Congressional Budget Office - and in many respects, the Senate Republican health care plan released this week that is worse for Maryland families. After seeing the House Republicans craft a bill that would kick 14 million enrollees off Medicaid due to funding cuts of $834 billion, Senate Republicans doubled down and opted for even deeper cuts in their version.

The full text of the letter is below and available at: https://www.cardin.senate.gov/download/mha-letter.

Dear Senators Cardin and Van Hollen:

On behalf of our 64 hospital and health system members, the Maryland Hospital Association strongly urges senators to oppose the American Health Care Act. The Act carries severe ramifications for every Marylander, not just those who would lose health care coverage. The Affordable Care Act brought an additional 300,000 Marylanders access to the care they need at doctor's offices, hospitals, pharmacies, nursing homes and more; another 150,000 had received coverage due to an earlier statewide expansion of Medicaid. And appropriate coverage is critical to ensuring that people are able to get the right care, at the right time, in the right setting.

But that achievement is now put in jeopardy by the American Health Care Act, which as written would drive up the cost of health care for everyone in Maryland. The cost of caring for uninsured people in Maryland dropped by $350 million as a result of the coverage gained in the Affordable Care Act. If the American Health Care Act is enacted as written, the cost of care for the uninsured would be passed on to everyone else in the form of higher health care costs and higher insurance premiums.

At the same time, the loss of broad-based coverage would severely jeopardize Maryland's unique All-Payer Model. Without access to the right care, at the right time, in the right setting that is made possible by health care coverage, Maryland's shift from volume-driven to value-driven care is not sustainable.

Without health insurance or an appropriately funded Medicaid program, people would find it expensive, if not impossible, to see their doctor on a regular basis and get the routine care they need. They wouldn't be able to pay for medicines to keep chronic conditions like diabetes or high blood pressure under control. They wouldn't be able to access the drug addiction services or mental health care they need. The result would be a reversion to the problems the state and the nation faced prior to passage of the Affordable Care Act, notably that people would forgo care until their health conditions are so acute that they need hospitalization. And for many, hospital emergency department would again become their only source of care, a shift away from current efforts to contain costs and improve people's health in the most appropriate care setting.

An estimated 1.3 million Marylanders are enrolled in Maryland Medicaid, which at $10 billion accounts for 23 percent of Maryland's annual spending. The American Health Care Act would cut federal Medicaid funding for Maryland by $305 million in 2018 alone and $13.2 billion over 10 years. That leaves our state with an enormous budget hole that to fill would require grim choices: raise taxes, cut state health care spending, cut state spending for other activities, or cut back on care for Medicaid enrollees.

As the backbone of our nation's health safety net, Maryland's hospitals and health systems believe it's vital that coverage be protected, particularly for our most vulnerable. Please protect the health of hundreds of thousands of Marylanders by preserving their coverage, and reject any legislation that would sacrifice coverage for a budgetary or political victory.

Sincerely,

Carmela Coyle, President and CEO

Maryland Hospital Association