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Uncompensated Care: A Case Study

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While a decrease in the number of uninsured would reduce the amount spent on uncompensated care, it still remains a big problem. Even with a mandate, there will still be uninsured people who free-ride at others’ expense, because of the Emergency Medical Treatment and Active Labor Act (EMTALA) that require hospitals to provide emergency care to anyone who needs it regardless of legal status or ability to pay. Since the uncompensated care accounts for just 4% of health spending, a mandate could affect at most 2.8% of spending (Roy, 2011). Also enrolling more individuals in Medicaid would most likely increase the amount of care they use and therefore increasing the amount of uncompensated care physicians provide. “Many of the people who seek uncompensated

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