President Donald Trump’s One Big Beautiful Bill, ignited a storm of concern across rural America due to the $4.5 trillion tax break and spending cuts that cause implications on Medicaid and rural healthcare. National and local media outlets report that the bill, which recently passed both chambers of Congress, proposed a $1 trillion Medicaid cut could jeopardize the future of over 338 rural hospitals, intensifying financial strain worsened by Medicaid payments falling below healthcare costs.
Rural hospitals brace for financial hits or even closure under Republicans’ $1 trillion Medicaid cut – MSN
Rural hospitals have long operated on the financial edge, especially in recent years as Medicaid payments have continuously fallen below the actual cost to provide health care. More than 20% of Americans live in rural areas, where Medicaid covers 1 in 4 adults, according to the nonprofit KFF, which studies health care issues.
President Donald Trump’s $4.5 trillion tax breaks and spending cuts bill, which passed Thursday, would worsen rural hospitals’ struggles by cutting a key federal program that helps states fund Medicaid payments to health care providers. To help offset the lost tax revenue, the package includes $1.2 trillion in cuts to Medicaid and other social safety net programs — cuts they insist only root out fraud and waste in the system.
What’s in the Trump Tax Bill Passed by the Senate? – WSJ
The legislation would reduce spending on Medicaid by imposing new work requirements and more frequent eligibility checks for enrollees. It also limits a hospital tax mechanism that lets states attract more federal funding. The bill proposes a new $50 billion fund for rural hospitals through 2030 to offset the impacts from that.
An earlier version of the Senate bill was estimated to cut Medicaid spending by almost $1 trillion through 2034, according to the Congressional Budget Office. Cost estimates for the new bill are yet to be released.
Politics Medicaid cuts could devastate hundreds of rural hospitals in GOP states, Democrats say – CBS
Cuts to federal spending on Medicaid could affect hundreds of rural hospitals in many states that have elected Republican senators and voted for President Trump, Senate Democrats warned Thursday, citing a list they commissioned tallying 338 rural hospitals at risk.
“Substantial cuts to Medicaid or Medicare payments could increase the number of unprofitable rural hospitals and elevate their risk of financial distress. In response, hospitals may be forced to reduce service lines, convert to a different type of healthcare facility, or close altogether,” wrote University of North Carolina researchers Mark Holmes, George Pink and Tyler Malone in their responses to the Democrats.
Rural hospitals brace for crisis as GOP bill slashes Medicaid funding – Fast Company
Rural hospitals in the U.S. already operate on a razor’s edge, but new cuts to Medicaid in the Republican appropriations bill could tip many of them into failure.
The Republican megabill that the House just passed in a 218-214 vote is a massive piece of kitchen sink legislation, extending Trump’s tax cuts and allocating hundreds of billions for immigration enforcement, among the president’s priorities. To pay for all of that spending, the bill will slash programs that make up the federal safety net by the largest amount in decades, mostly through major cuts to Medicaid.
How Might Federal Medicaid Cuts in the Senate-Passed Reconciliation Bill Affect Rural Areas? – KFF
Approximately 66 million people – about 20% of the U.S. population – live in rural areas, where Medicaid covers 1 in 4 adults (a higher share than in urban areas) and plays a large part in financing health care services. In rural communities, Medicaid covers nearly half of all births and one fifth of inpatient discharges. The Congressional Budget Office (CBO) estimates that the Senate-passed budget reconciliation bill would reduce federal Medicaid spending by $1.04 trillion over ten years, and result in 11.8 million more uninsured people nationwide. Senators from both parties have raised concerns about potential impacts on rural hospitals and other providers, particularly given the ongoing trend of rural hospital closures.
To address those concerns, the Senate-passed bill includes $50 billion in funding over five years (starting in fiscal year 2026) for state grants through a Rural Health Transformation Program (referred to here as the “rural health fund”). This policy watch estimates how the Senate-passed reconciliation bill would affect federal Medicaid spending in rural areas and compares those reductions to the reductions in the House-passed reconciliation bill, and to the newly proposed funding for rural areas through the rural health fund. Although there is not yet a CBO cost estimate available for the Senate-passed bill, this analysis estimates the likely effects, building on KFF’s estimated reductions in Medicaid spending that were based on CBO estimates from an earlier version of the Senate reconciliation bill.
Trump’s ‘big, beautiful bill’ could impact 750K Georgians’ access to healthcare – Fox 5 Atlanta
According to the Associated Press, the Congressional Budget Office estimates the spending package will add $3.3 trillion to the deficit over the next decade and 11.8 million more people will go without health coverage.
The president and Republican leaders say the massive reform bill is part of their plan to cut waste, fraud, and abuse. But critics argue millions of low-income Americans could lose vital healthcare coverage.
Leah Chan is with the Georgia Budget and Policy Institute. She says the impending cuts put hundreds of thousands of Georgians at risk.
“We’re looking at upwards of 750,000 Georgians losing access to healthcare, Chan said. “It means more Georgians saddled with crushing medical debt and the inability to see the doctor, fill prescriptions and stay healthy.”
Here’s what’s in Trump’s GOP megabill and how it will affect Texans – The Texas Tribune
Medicaid, a federal-state health insurance program for low-income and disabled people, insures over 4 million Texans. The federal government paid for nearly two-thirds of the program’s $57 billion costs in Texas during the 2023 fiscal year, according to KFF, a nonprofit health policy organization. Using estimates from the nonpartisan Congressional Budget Office, KFF projects that Texas stands to lose 10% of its federal Medicaid funds over the next decade, or $39 billion.
The cuts could be particularly potent in the Rio Grande Valley, which has an outsized number of Medicaid recipients, and in rural areas, where hospitals rely on Medicaid payments. Texas already has the highest uninsured rate in the nation.
Beyond Medicaid, the bill makes it harder to enroll in coverage through Affordable Care Act marketplaces and allows for the expiration of Biden-era enhanced premium tax credits that lower out-of-pocket costs for people with ACA marketplace coverage. Because Texas is among the 10 states that have never expanded Medicaid under the ACA, its residents rely heavily on marketplace coverage and the soon-to-expire tax credits.
US Senate passes bill, sparking concerns over Oklahoma rural healthcare cuts – KUTL
A major federal bill known as the ‘One Big Beautiful Bill’ passed the U.S. Senate today. Some say it could have significant consequences for rural healthcare across the country, especially in Oklahoma.
Among those concerned is Rich Rasmussen, the President and CEO of the Oklahoma Hospital Association. He warns that the bill’s proposed $800 million in federal funding cuts would be devastating for rural hospitals.
“All the work that has been done to make investments in rural health care in our state will dry up,” said Rasmussen.
Trump’s budget bill will add ‘significant stress’ to Maine hospitals, officials say – Maine Public
Various studies project that anywhere from 40,000 to 60,000 Maine residents could lose health insurance as a result of the changes. And that would put an additional financial strain on hospitals — especially rural hospitals — that cover uninsured people who come to emergency rooms for care.
“There are hospitals today that are at risk today because of a number of difficult financial challenges,” said Jeff Austin, vice president of government affairs at the Maine Hospital Association. “Anything that adds to it — including congressional action, a recession, state action — all of it is a concern. We’ve seen one (hospital) close and we have a few others that are in pretty precarious situations without any policy changes. So, yeah, we have concerns.”
Iowa rural hospitals could be at risk under Trump’s tax bill – We Are Iowa
The bill provides $50 billion in funding for rural hospitals, over the next five years. However, according to Dr. Whitney Zahnd, an assistant professor of health management and policy at the University of Iowa, that’s only about a third of what the predicted losses are.
“It does include what they call a rural health fund that is $50 billion to help with rural the impact of rural hospitals,” she explained. “But that’s not near enough … there’s [an] anticipated $155 billion impact on rural hospitals because of this bill.”
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***News roundup guest post from FischTank PR interns Abby Collins and Laura Gruener***
