Medicaid cuts to hit hospitals before OBBB Medicaid cuts
Hospitals and health systems are facing financial challenges due to a series of regulatory changes and lack of action in other areas, including $24 billion in Medicaid DSH cuts, $90 million in ACA marketplace navigator funding, and potential cuts to Medicaid and ACA marketplace subsidies.
Federal Medicaid cuts loom, but states can act sooner
States have the option to implement Medicaid cuts required by the One Big Beautiful Bill Act earlier than 2027, including work requirements, eligibility determination frequency, and retroactive coverage limitations, and may also target provider rates and social determinants of health programs.