Nebraska Hospitals Warn Senate Medicaid Cuts Threaten Rural Services

The Senate Finance Committee’s version of President Donald Trump’s "Big, Beautiful Bill" proposes significant Medicaid cuts, particularly slashing the provider tax from 6% to 3.5% for states that expanded Medicaid under Obamacare, a move that hospital associations warn will devastate rural hospitals and patient services nationwide. Nebraska hospitals emphasize that the bill’s Medicaid cuts would reduce reimbursements, leading to program losses and closures of critical services, especially impacting rural communities where nearly half of hospitals operate in the red. Hospital leaders like Jeremy Nordquist of Nebraska and Nicole Stallings of Pennsylvania highlight the potential for widespread service reductions and hospital closures due to the financial strain caused by these cuts. Despite some GOP senators expressing concerns, the Senate bill's deeper cuts contrast with the House version, which maintained the tax at 6% but included a moratorium on new taxes, causing anxiety among hospital groups. Hospital advocates are urging constituents to contact senators to oppose these reductions, underscoring that without adequate funding, Medicaid benefits could become "benefits to nowhere," as essential local healthcare services become inaccessible. The Senate aims to pass this bill by early July, intensifying the urgency for community and political engagement to protect Medicaid funding and rural healthcare infrastructure.