Medicaid cuts

States Looking to Medicaid For Spending Cuts?

Amid growing budget pressures, a number of states have reduced Medicaid payments to providers – and others are looking to Medicaid as a possible source of savings. So far, Idaho and North Carolina have reduced Medicaid payments to providers while Illinois is looking at Medicaid, among other sources, in the face of its governor’s desire to reduce spending by four percent in the coming year. In addition, Indiana is pursuing a complex process of increasing state Medicaid payments to some providers through state directed payments but the net effect, according to hospital groups, could be an actual reduction of nearly [...]

joe2025-10-08T11:42:46-04:00October 9, 2025|Medicaid|

Preparations for Rural Health Transformation Program Continue

When Congress enacted its FY 2025 budget reconciliation bill – the so-called “One Big Beautiful Bill” – it recognized that the Medicaid cuts in that legislation could have a damaging effect on some health care providers and the communities they serve and created a five-year, $50 billion “Rural Health Transformation Program” designed to help protect rural hospitals from some of the damage those cuts are expected to cause. Now, federal regulators are working to bring that program to life. The Centers for Medicare & Medicaid Services, which will administer the program, has created a web site for the program. That [...]

joe2025-09-04T16:54:10-04:00September 8, 2025|Medicaid|

The Likelihood of Major Medicare Cuts

While the potential for significant Medicaid cuts resulting from passage of the FY 2025 federal budget reconciliation bill – the so-called One Big Beautiful Bill – has received a great detail of attention, the possibility of Medicare cuts as well has flown mostly under the radar. Until now. In a letter to Democratic congressional committee leaders, the Congressional Budget Office has put a price tag on prospective Medicare cuts. According to the CBO, the FY 2025 budget reconciliation bill could lead to more than $500 billion in federal Medicare payment cuts between next year and 2034. The federal “PAYGO” law [...]

joe2025-08-19T14:06:16-04:00August 20, 2025|Medicaid, Medicare, Medicare reimbursement policy|

Potential Medicaid Implications of the “One Big Beautiful Act”

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 [...]

joe2025-08-12T16:55:13-04:00August 13, 2025|hospitals, Medicaid, Medicaid managed care|

The Coming Medicaid Work Requirement

Among the many Medicaid-related aspects of the recently enacted FY 2026 budget reconciliation bill – the One Big Beautiful Bill Act – is a new requirement that much of the Medicaid population be employed or participate in some acceptable form of “community engagement.” But how will the work requirement work? How will it be implemented and enforced? KFF has taken an in-depth look at this matter, reporting on such issues as: What the new law requires. The timeline for the work requirement’s implementation. How much money the states and the federal government stand to save by ending Medicaid How many [...]

joe2025-08-05T17:24:07-04:00August 6, 2025|Congress, Medicaid|

The New Rural Health Fund

Recognizing that the Medicaid and other health care cuts in the recently enacted FY 2026 budget reconciliation bill – the so-called One Big Beautiful Bill – will exact a heavy toll on rural hospitals, Congress included in that bill a short-term Rural Health Fund designed to help ameliorate the impact of some of the cuts it was adopting. KFF Health has taken a closer look at the Rural Health Fund, how it is structured, and how it is expected to work and has identified some of the bill’s major components. They include: The rural health fund includes $50 billion, which [...]

joe2025-07-23T10:30:29-04:00July 23, 2025|Centers for Medicare & Medicaid Services, Congress, hospitals, Medicaid|

States Mull Response to Reconciliation Bill’s Medicaid Cuts

Establishing new grant programs for hospitals, especially for rural hospitals. Reducing or eliminating optional Medicaid benefits such as dental and vision. Cutting payments to providers. Calling their legislature back into session. These are among the moves states are considering in the wake of passage of the FY 2026 budget reconciliation bill that results in hospitals facing a loss of approximately 18 percent of their Medicaid funding over the next decade. Learn more about some the Medicaid financial challenges states now face and how they are considering responding to them in the Stateline article “States scramble to shield hospitals from GOP [...]

joe2025-07-08T11:54:16-04:00July 9, 2025|Medicaid|

Health Care Implications of Senate Reconciliation Bill

On Tuesday the Senate passed an FY 2026 budget reconciliation bill by a vote of 51-50, with Vice President Vance casting the tie-breaking vote. The bill cuts $1 trillion in Medicaid spending and keeps most of the Medicaid provisions included in the version released by the Senate Finance Committee in mid-June. The bill passed by the Senate creates a fund for rural providers of $50 billion over five years. The major Medicaid provisions in the bill include: A freeze on the size of Medicaid provider taxes, phased down reductions of current taxes toward a new, lower limit for many states, [...]

joe2025-07-02T12:58:19-04:00July 3, 2025|hospitals, Medicaid, Medicaid disproportionate share, Medicaid DSH, Medicaid DSH allotments, Medicaid managed care, Medicaid regulations, Medicare|

Federal Health Policy Update for May 8

The following is the latest health policy news from the federal government for May 2-8. Some of the language used below is taken directly from government documents. Congress Reconciliation Over the past several days the political gravity surrounding Medicaid cuts has begun to shift slightly. Moderate Republicans have been pushing back more forcefully and more loudly against such cuts, with some saying they will not support more than work requirements and increased enforcement checks for eligibility. Opposition to most Medicaid cuts led the Energy and Commerce Committee to delay a markup of its reconciliation bill planned for this week to [...]

joe2025-05-08T16:50:48-04:00May 8, 2025|Accountable Care Organization, Alternative payment models, Congress, Medicaid, Medicaid managed care, Medicaid regulations, Medicare, Medicare reimbursement policy|

Federal Health Policy Update for May 1

The following is the latest health policy news from the federal government for April 25 – May 1. Some of the language used below is taken directly from government documents. Congress Reconciliation The House and Senate returned to Washington D.C. this week and House committees have begun marking up reconciliation legislation for submission to the House Budget Committee by May 9. The Energy and Commerce Committee is expected to seek nearly $550 billion in cuts to Medicaid spending and the most likely targets for cuts continue to be work requirements for Medicaid eligibility; more frequent review of Medicaid eligibility; reducing the federal [...]

joe2025-05-01T15:33:24-04:00May 1, 2025|Centers for Medicare & Medicaid Services, Congress, MACPAC, Medicaid, Medicaid and CHIP Payment and Access Commission, Medicare, Medicare disproportionate share, Medicare DSH, Medicare post-acute care, Medicare regulations, Medicare reimbursement policy, Telehealth|