States Refusing Expanded Medicaid Fuel Worst Losses

Municipal bonds sold by hospitals and health-care systems have been the market’s biggest losers in the past three months. Debt from facilities in the 21 states that aren’t expanding Medicaid is poised to fare even worse.

A key provision of President Barack Obama’s health-care plan is extending care under the health program for the poor, which is financed by states and the federal government. Where politicians don’t go along, millions would be left uncovered, costing hospitals more in uncompensated care.