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Federal Budget Could Push Rural Health Care in PA to the Brink

  • In May, the U.S. House narrowly approved a federal budget plan that proposes reducing Medicaid funding by close to $800 billion over the coming ten years.
  • The proposal includes an 80-hour-per-month work requirement for Medicaid recipients aged 19 to 64 and increases eligibility verification from annually to every six months.
  • More than 3 million Pennsylvanians rely on Medicaid, with over 737,000 in rural areas where hospitals already face losses averaging 18 to 26 cents per dollar of Medicaid care.
  • Hospital and health system leaders warn that the cuts could force rural hospitals to close or reduce services and increase uncompensated care and insurance costs across the state.
  • Opponents argue the budget bill will worsen rural health crises, economic strain, and emergency department crowding, while supporters contend it will slow spending and protect programs.
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Spotlight PA broke the news in on Tuesday, June 10, 2025.
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