Tax Avoidance by Major U.S. Healthcare Corporations Raises Coverage and Care Concerns

Since the 2017 tax reform, seven leading U.S. healthcare corporations have collectively avoided over $34 billion in taxes, a trend enabled by tax policies extended by recent legislation. These tax savings have coincided with increased costs and reduced care quality for patients, including higher prices charged by hospitals and coverage denials by insurers. The same tax law changes are projected to result in nearly 15 million Americans losing health coverage, with large drops in Medicaid and ACA marketplace enrollment. Experts recommend reforms to close tax loopholes and raise corporate tax rates to ensure these profitable firms contribute fairly to public revenues and prioritize patient care quality. Increased corporate profitability in healthcare has raised concerns about its impact on affordability and access to necessary medical services in the U.S.