Trump wants to expand Medicaid cuts, building on tax cut bill

Tara covers the business of health care. Her stories focus on hospitals, doctors, and how their business practices affect patients — especially when private equity gets involved. She also writes about health insurance and ideas for improving our broken health system. You can reach Tara on Signal at tarabannow.70.

Hospitals and other health care providers are preparing for the loss of additional funds they have been receiving for treating Medicaid patients. This is part of the broad cuts outlined in the Republicans’ comprehensive 2025 tax legislation.

Recently, the Trump administration announced plans to implement further reductions to state-directed payments, which is expected to lead to a confrontation with provider groups.

Since 2024, a range of health care providers including hospitals, doctors, and nursing homes have been compensated for Medicaid services at elevated commercial rates due to a change initiated during the Biden administration. The One Big Beautiful Bill Act, enacted in July, instructs the Centers for Medicare and Medicaid Services to begin gradually decreasing these payments starting in 2028, aligning them more closely with Medicare rates.

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