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Senate GOP Mulls Shielding Rural Hospitals From Medicaid Cuts

KANAWHA COUNTY, WEST VIRGINIA, JUN 20 – Proposed Medicaid cuts could force rural hospitals to reduce services or close, risking coverage loss for 1.8 million rural residents by 2034, advocates warn.

  • The Senate Finance Committee released a draft budget bill that would cap provider taxes at 3.5% and impose work requirements on Medicaid expansion states.
  • This proposal follows House Republicans' recent approval of a tax and spending package increasing the SALT cap to $40,000, while the Senate resists raising it.
  • Rural hospitals, heavily reliant on Medicaid and often sole care providers, face severe risks of funding loss, service cuts, and possible closures under these changes.
  • Experts estimate 1.8 million rural residents could lose Medicaid coverage by 2034, with cuts removing $29 billion to $55 billion over a decade and threatening 142,000 healthcare jobs.
  • Opponents, including hospital associations and Senator Josh Hawley, urge safeguards for rural providers to protect healthcare access and state budgets amid Medicaid cuts.
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Managed Healthcare Executive broke the news in on Thursday, June 19, 2025.
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