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Nebraska Rural Hospitals Decry Proposed Senate Medicaid Cuts

  • Senate Republicans proposed changes to Medicaid funding including cuts to provider taxes that could impact rural hospitals across Nebraska and other states.
  • These proposals follow Nebraska lawmakers' 2024 session efforts to increase federal Medicaid reimbursements via bill LB1087, which generated bipartisan support to boost rural hospital funding.
  • Providers face rising costs with Nebraska hospitals experiencing a nearly 33% increase in care costs from 2020 to 2024 while Medicaid reimbursement rose only 9.3%, forcing 1 in 5 rural hospitals to cut essential services.
  • Sen. Josh Hawley criticized the bill saying, "This bill needs a lot of work" and warned rural hospitals "are going to be in bad shape," while Nebraska Hospital Association called the cuts "an alarming attack" on fragile healthcare.
  • Lawmakers are negotiating a provider relief fund intended to support rural hospitals, but Republicans remain uncertain if it will sufficiently offset funding losses or gain necessary political support.
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Real Vail broke the news in on Wednesday, June 18, 2025.
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