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Rural Hospitals at Risk: Cuts to Medicaid Would Further Threaten Access
The One Big Beautiful Bill Act (H.R. 1) would result in 1.8 million individuals in rural communities losing their Medicaid coverage by 2034. In addition, select Medicaid provisions in H.R. 1 would result in a $50.4 billion reduction in federal Medicaid spending on rural hospitals over 10 years.
Fact Sheet: Medicaid
AHA urges Congress to reject reductions to the Medicaid program that would not only strip access to health care from some of the most vulnerable populations but also destabilize hospitals and health systems, leading to a loss of services that would impact patients and communities nationwide.
Medicaid Spending Reductions Would Lead to Losses in Jobs, Economic Activity and Tax Revenue for States
The AHA’s analysis reflects the incremental economic impacts of Medicaid cuts across the entire program in each
state, including spending on hospitals, physician offices, specialists and pharmacies.
Medicaid Coverage Supports Rural Patients, Hospitals, and Communities
One in seven Americans live in rural areas and rely on rural hospitals and health systems for the health and well-being of their communities. Many in Congress are currently considering cuts to the Medicaid program, which could have a devastating impact on rural hospitals and patients.
Advocacy Issue: Medicaid
The Medicaid program is the largest single source of health care coverage in the United States, covering nearly half of all children, many low-income elderly and disabled individuals, and working adults in low-wage jobs. With the passage of the One Big Beautiful Bill Act (P.L. 119-21), Congress made policy changes that will reduce federal spending for the Medicaid program by hundreds of billions of dollars over the next 10 years.
Hospital Outpatient, Ambulatory Surgical Center Proposed Rule for CY 2026
The AHA is disappointed that CMS proposes an inadequate Medicare outpatient hospital payment update, as many hospitals — especially those in rural and underserved communities — operate under challenging financial pressures.
TAKE ACTION: Engage Lawmakers in August to Build Support for Key Priorities
It is important to engage with your lawmakers while they are home and discuss the impact that the recently passed One Big Beautiful Bill Act and additional policy proposals that are under consideration will have on hospitals’ ability to provide care.
Fact Sheet: Medicaid DSH Program
The Medicaid Disproportionate Share Hospital (DSH) program provides essential financial assistance to hospitals that care for our nation’s most vulnerable populations, including children and those who are disabled and elderly. These hospitals also provide critical community services, such as trauma and burn care, maternal and child health, high-risk neonatal care and disaster preparedness resources.
Key Highlights of the Final One Big Beautiful Bill Act
The Senate July 1, and the House July 2, passed a budget reconciliation bill, the One Big Beautiful Bill Act (OBBBA), H.R. 1, a sweeping package that enacts many of President Trump’s legislative priorities on taxes, border security, energy and deficit reduction. The bill includes significant policy changes to Medicaid and the Health Insurance Marketplaces.