Growing uncompensated care.
Service cuts.
Reduced access to care, especially in rural areas.
Expansion projects placed on hold.
These are among the potential implications of the Medicaid cuts included in the recently passed FY 2025 budget reconciliation bill, often referred to as the “One Big Beautiful Act.”
A significant portion of those cuts will come through limits on state directed payments: supplemental Medicaid payments proposed by the states and approved by the federal government to selected providers for high-cost, high-demand, low-payment services delivered through Medicaid managed care plans. The new law limits future use of this mechanism and may, in some cases, reduce already-approved state directed Medicaid payments.
Learn more about the potential implications of the Medicaid cuts included in the FY 2025 budget reconciliation bill from the Healthcare Dive article “Hospitals prepare for $149B cut to Medicaid state-directed payments.”