Bangkok--1 Feb--Standard & Poor's
Standard & Poor's Ratings Services believes state governments are likely to play an increasingly important--and potentially expensive--role in U.S. health care reform, according to a published report. The report, titled "Credit FAQ: U.S. States Brace For Health Care Reform And Higher Medicaid Spending," answers some frequently asked questions about how growing health care costs might affect state budgets and credit quality.
The U.S. has begun to implement its historic health care reform, enacted last year as the Patient Protection and Affordable Care Act (PPACA).
"The states will be especially pinched once the PPACA's central provisions take effect in 2014," said Standard & Poor's credit analyst Robin Prunty. "The demands would be significant, even in a robust economy. But with the national economy apparently stuck in neutral, there's little certainty as to what it'll look like three years from now."
The law's expansion of Medicaid could bring even more cost pressures and volatility to already strained state budgets, the report says. This comes at a time when the nation's "baby boomers" have started to retire, and an aging population will strain all facets of the health care system, public and private.
The report is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Robin Prunty, New York (1) 212-438-2081
Ana Sandoval, New York (1) 212-438-5095