Senate Republicans debate Medicaid cuts, propose rural hospital fund

As the Senate prepares to act on President Trump's tax-cut bill, significant concern surrounds proposed Medicaid cuts that threaten the financial stability and operation of rural hospitals. Senate Republicans, including Majority Leader John Thune and Senators Susan Collins and Bill Cassidy, are exploring the creation of a special fund to support financially vulnerable rural hospitals and other providers to alleviate these risks. The Senate Finance Committee's draft includes deeper Medicaid cuts than the House's version, exacerbating worries that hundreds of rural hospitals could face closure. Proposals under consideration also involve scaling back the Medicaid provider tax in states that have expanded Medicaid, with some lawmakers emphasizing the importance of preserving rural healthcare infrastructure. Discussions include the possibility of distributing funds through executive action to maintain budgetary limits while ensuring hospital relief. These efforts aim to reconcile divisions within the Republican caucus and facilitate the bill's passage by early July while maintaining access to care in rural communities.