Statement on Tax Cuts and Job Acts of 2017

We are pleased that the Senate bill did not eliminate the tax-exemption for private-activity bonds for not-for-profit hospitals, protecting hospitals' and health systems' access to this vital source of low-cost capital.

Press Release

Statement on Tax Cuts and Job Acts of 2017

 

Rick Pollack

President and CEO
American Hospital Association

December 2, 2017

 

We are pleased that the Senate bill did not eliminate the tax-exemption for private-activity bonds for not-for-profit hospitals, protecting hospitals’ and health systems’ access to this vital source of low-cost capital. This important tool helps provide hospitals with much-needed capital in a cost-efficient manner to modernize facilities to enhance and expand patient care and access. Unfortunately, at the same time, the bill would eliminate hospitals’ ability to execute tax-exempt advance refundings of outstanding tax-exempt bonds, an important means for reducing hospital borrowing costs. In addition, we are glad that the bill did not eliminate medical expense deductions for people with high medical costs and instead lowers the threshold for medical expense deductions from 10 percent to 7.5 percent for two years.

We are also disappointed that the tax legislation passed with a provision that would eliminate the individual mandate, which would result in the loss of health insurance coverage for millions of Americans. The goal of the ACA was to extend coverage and, as a result, millions have benefitted from access to needed care. We must protect that access to care for those who need it and ensure the most vulnerable patients are not left behind.

We look forward to working with Congress on a number of issues related to the tax legislation. It is our hope that Congress can work together on solutions that deliver the access, care and coverage that the American people deserve.

 

About the AHA

The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which include nearly 5,000 hospitals, health care systems, networks, other providers of care and 43,000 individual members. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at www.aha.org.

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