How will Medicaid cuts harm health care opportunities in rural America?
The Trump administration's flagship budget package, known as a “big bill” and is moving forward through Congress and is currently awaiting a Senate vote. The bill includes the largest Medicaid funding cuts proposed in the program's history — a change that could lead to sudden loss of Medicare for more than 10 million Americans.
The American Hospital Association estimates that the passage of the legislation will result in a $50.4 billion reduction in federal Medicaid spending for rural hospitals over the next decade and a loss of Medicaid coverage for 1.8 million people in rural communities.
The AHA noted in a report released last week that this situation is particularly disturbing, as rural hospitals already face serious financial challenges. Due to the small patient population and the high cost of attracting employees, providing health care in rural areas is often more expensive.
The report highlights a statistics showing that nearly half of rural hospitals operate in 2023 with financial losses. It also noted that 92 rural hospitals have been forced to close over the past 10 years.
Rural providers are not only often struggling financially, but they are often dependent on Medicaid income. In rural communities, 18% of adults are covered by Medicaid.
The AHA report notes that in nine states, more than half of the Medicaid population lives in rural areas. These states are Alaska, Kentucky, Maine, Mississippi, Montana, North Dakota, South Dakota, Vermont and Wyoming.
The report also notes that 47% of delivery in rural communities cover Medicaid.
“A large Medicaid cut in the Beauty Act will devastate rural hospitals across the country,” AHA ​​CEO Rick Pollack said in a statement. “Many rural hospitals will be forced to choose between maintaining services, keeping employees and possibly closing doors. Patients will be forced to travel for hours for basic or emergency care, and the community will be compromised.”
In addition to the AHA, a group of Democratic senators have released an analysis that assesses the impact of budget plans on rural health care. Their analysis found that the legislation could put 338 rural hospitals at risk.
The states with the highest number of hospitals at risk of closure are Kentucky (35), Louisiana (33), California (28), and Oklahoma (21).
The analysis also points out that hospital closures in rural America will also pose a threat to many local economies – given that rural hospitals are often one of the largest employers in the region.
Photo: Super, Getty Images
