KFF March 5, 2025
There are several options under consideration in Congress to significantly reduce Medicaid spending to help pay for tax cuts, with the recently passed House budget resolution targeting cuts to Medicaid of up to $880 billion or more over a decade. Large reductions in Medicaid spending are likely to have direct implications for the 83 million people covered by Medicaid, state budgets, and health care providers, including hospitals. Medicaid accounted for about one fifth (19%) of all spending on hospital care in 2023. Changes in hospital finances could affect patient care and may have broader economic implications, given that, for example, hospitals employ 6.7 million people and are the sixth largest employer in the country when comparing industry subsectors.
A number...
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