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GOP Budget Threatens Rural Hospitals Across Several States

MAINE, UNITED STATES, JUL 19 – Maine’s new law raises charity care income limits and simplifies applications as federal Medicaid cuts threaten coverage loss for 34,000 residents, officials estimate.

  • On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill, which reduces federal Medicaid spending by about $1 trillion over the next decade.
  • The bill follows rising concerns about rural hospitals, many already financially strained, and includes Medicaid eligibility changes that could lead to 250,000 people losing coverage.
  • Experts warn that these cuts risk increased rural hospital closures, reduced services, longer travel for acute care, and job losses impacting community health outcomes nationwide.
  • The bill allocates $50 billion over five years for various purposes, including rural facility payments, while states face complex decisions like raising taxes or rescinding Medicaid expansion to manage funding gaps.
  • Stakeholders emphasize the need for cost-effective care, innovative solutions like telehealth, and community engagement to maintain access, as some states have already begun responding to the bill's effects.
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Newsweek broke the news in United States on Friday, July 18, 2025.
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