A new analysis conducted by the Urban Institute in collaboration with the Robert Wood Johnson Foundation warns that a House-approved bill proposing substantial reductions in Medicaid funding would have severe consequences for the U.S. healthcare system. The bill, currently under consideration in the Senate, could dramatically affect hospitals, physicians, and patients nationwide.
According to the study, if the bill is enacted as written, hospitals would face a dramatic $321 billion loss in funding due to proposed changes made during the budget reconciliation process. Physicians are also set to experience a significant financial impact, with an estimated $81 billion reduction in payments. The report emphasizes that these cuts would not only strain healthcare providers financially but could also lead to reduced access to care, particularly for low-income individuals who rely heavily on Medicaid services.
The proposed legislation aims to sharply curtail Medicaid spending by restructuring the way the program is funded, shifting toward a per capita cap or block grant model. Critics argue that such changes would shift more of the financial burden to states, many of which may be unable to make up the funding shortfall, potentially resulting in service cutbacks, longer wait times, and reduced healthcare coverage.
Healthcare advocates and policy experts have voiced strong opposition to the bill, warning that the scale of the cuts could undermine the financial viability of hospitals, particularly in rural and underserved areas. The changes could also destabilize insurance markets and lead to higher rates of uncompensated care.
The Senate is expected to further debate the bill in the coming weeks. Lawmakers face increasing pressure to balance fiscal objectives with the potential consequences on healthcare access and quality for millions of Americans. The study underscores the need for a careful reassessment of the proposal’s long-term implications on the health of communities across the country.
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