Hospitals brace for Medicaid cuts, some resort to layoffs
Hospitals and health systems are responding to the OBBBA cuts by reducing staff and increasing revenue, while some are also pursuing mergers and acquisitions to improve efficiency and balance their budgets.
The OBBB’s Medicaid work requirements and the hidden risks for hospitals
The One Big Beautiful Bill (OBBB), passed this summer, contains a provision of great consequence for hospitals: Medicaid work requirements. The new law requires a subset of beneficiaries to log at least 80 hours of employment, volunteering or schooling each month to maintain coverage. The changes carry significant administrative and reputational risk for health systems.…
Hospitals brace for looming federal cuts in Medicaid and elsewhere
The historic healthcare policy changes — and associated Medicaid cuts — in the One Big Beautiful Bill Act have left it to the states to figure out how to keep their residents insured and healthy with $1 trillion less in federal funding. With impacts of the One Big Beautiful Bill Act, or OBBBA, including a…
Hospitals seek to mitigate $1.1 trillion in federal healthcare spending cuts
Hospitals and health systems face large federal funding cuts from the recently enacted reconciliation law, but advocates and observers believe there are opportunities to mitigate them through legislative efforts, state initiatives, and potential rollbacks.
Federal Medicaid cuts loom, but states can act sooner
States have the option to implement Medicaid cuts required by the One Big Beautiful Bill Act earlier than 2027, including work requirements, eligibility determination frequency, and retroactive coverage limitations, and may also target provider rates and social determinants of health programs.
Senate passes tax bill with $1 trillion in Medicaid cuts despite concerns
The Senate passed a tax and spending reduction bill that includes over $1 trillion in 10-year Medicaid cuts, with Vice President J.D. Vance breaking a 50-50 tie, and included amendments to create a $25 billion fund for rural hospitals and accelerate the start of new Medicaid eligibility checks to 2027.
Medicaid policy changes threaten financial boon for hospitals and health systems
Medicaid legislative changes, including proposed rate caps, work requirements, and limits on provider taxes, are expected to end the financial boon for hospitals and health systems, according to S&P Global Ratings.
Lesser-known healthcare changes found in budget bill
The House-passed budget reconciliation bill includes numerous healthcare provisions, including Medicaid changes that would reduce future increases in federal Medicaid spending by $625 billion and result in 8.6 million more uninsured over a decade, as well as changes to tax-advantaged accounts and the Affordable Care Act, which would allow Medicare Part A enrollees to contribute to HSAs and allow HSAs to be used for fitness and exercise programs.
Hospitals urge ways to cut $1 trillion administrative cost
The American Hospital Association has submitted 100 regulatory changes to the Trump administration to reduce the estimated $1 trillion annual cost of health administrative requirements, including deregulating quality measures, billing and payment, and telehealth.
Congress could target $35 billion in Medicaid for undocumented patients
The House of Representatives is considering up to $880 billion in Medicaid cuts over the next 10 years, which could include funding for undocumented immigrant care, as well as reducing the federal share of Medicaid funding to any state that uses state-only funding to provide Medicaid coverage to undocumented immigrants.