Health Reform

Health reform poses both challenges and opportunities for healthcare providers. Hospitals will receive lower annual inflation updates for the next 10 years and significant reductions in disproportionate share (DSH) payments. Health reform also contains dozens of provisions that are intended to improve the efficiency of the healthcare system. Many of these changes may also decrease revenues for providers, but some of these reductions could be offset because an estimated 32 million uninsured Americans are expected to have coverage by 2019. This report also addresses:

• Expansion in insurance coverage
• State-based insurance exchanges
• Reimbursement changes
• Focus on fraud and abuse
• 501(c)(3) requirements / charitable hospital organizations
• Timeline

The effects of the healthcare reform law, changing market conditions, emerging societal trends and challenges to MPL tort reform all will influence future MPL insurance costs. Inflationary pressures and other factors are likely to increase MPL insurance costs in the short-term. Careful consideration of the impact of these potential changes will better prepare healthcare providers, liability insurers, and medical professionals for changes in MPL insurance costs before they actually occur.