States Scramble to Shield Hospitals from Largest US Medicaid Cuts

President Donald Trump signed a major tax and spending bill that enacts the largest health care spending cuts in U.S. history, cutting over $1 trillion from Medicaid, the public insurance program for low-income Americans. These cuts are expected to reduce payments to hospitals and nursing facilities in at least 29 states, prompting states to act swiftly to protect their healthcare systems. Georgia, for example, has moved to allocate more state Medicaid funds to hospitals to maximize federal matching dollars before the cuts take effect, while other states are exploring grant programs for rural hospitals and considering legislative sessions to address Medicaid budget shortfalls. The reduction in funding threatens to force hospitals, especially in rural areas, to cut services or close, which could increase uncompensated care and force patients to travel farther for care. Health experts warn that such closures will have severe consequences for vulnerable populations who rely on Medicaid coverage. The situation has sparked concern and opposition from healthcare providers and advocacy groups who emphasize the urgent need to mitigate the impact of these cuts.