Right now, the U.S. Senate is advancing a proposal in the federal budget bill that would slash billions in funding from local hospitals across the country. The Senate’s current budget proposal proposes dramatic changes to state financing by cutting the baseline for the Medicaid “provider tax” from the existing 6% down to 3.5%.
The proposed decrease to the provider tax would have a devastating impact, stripping away a significant revenue source that many states rely on to support Medicaid and their local hospital systems.
If approved, these cuts could result in service rollbacks, staff layoffs, and, in some cases, full hospital closures — especially in rural communities where alternatives are limited or nonexistent. Patients could face longer travel times for emergency care, fewer local options for managing chronic conditions, and reduced access to lifesaving treatments.
This funding is not supplemental; it’s essential infrastructure. Lawmakers should reject any plan that jeopardizes the stability of local hospital systems and the care millions of Americans rely on.
By The Numbers
17 Minutes in an Emergency
Rural Americans reside an average of 10.5 miles (roughly 17 minutes) from their nearest hospital — about twice as far as people in suburban and urban areas.
Source: Pew Research Center
80 Million Americans at Risk
Cuts to Medicaid put healthcare at risk for approximately 80 million Americans including nearly 38 million children.
Source: KFF
36 Million Medicaid Enrollees
Medicaid work requirements could put 36 million people at risk of losing health coverage – including residents of every state.
Source: CBPP
34% of Rural Adults
Medicaid cuts would disproportionately impact rural communities. In New York, nearly 34% of adults living in rural areas rely on Medicaid.
Source: CCF.Georgetown.edu
77% of Voters
Medicaid has bipartisan support from voters. A majority of Democrats, Republicans and Independents support the program with 77% of registered voters having a favorable opinion of Medicaid.
Source: KFF
2 in 3 Medicaid Enrollees Work
Nearly 2 in 3 recipients already work, and those who don’t care for family, are disabled or attend school. Research shows that work requirements do not increase employment and lead to lost coverage.
Source: CBPP.org
$79 Billion Hole in Annual Funding
Restructuring federal funding for Medicaid will create an estimated $79 billion hole in state budgets every year for ten years, jeopardizing healthcare for millions of working-class Americans.
Source: KFF