Proposed Medicaid cuts could have catastrophic impact on rural hospitals, advocates warn

CHARLOTTE, N.C. — A new funding fight in Washington is raising alarms in rural America.

A proposal in the Senate could hit small hospitals the hardest, putting critical health care access at risk. 

Rural hospitals are warning they could be forced to close if a new Senate proposal to cut Medicaid funding becomes law. 

The plan would limit how states use provider taxes, which is a key way rural hospitals get money to stay open. 

The states and the federal government fund Medicaid. States use provider taxes, which are fees on hospitals and health care facilities, to boost their Medicaid budgets and get more federal dollars. 

However, a Senate bill would lower the cap on those taxes, which could lead to massive funding shortfalls for rural hospitals. One hospital CEO says losing that money would mean cutting services or shutting down entirely. Advocates warn it could cause thousands to lose care and result in preventable deaths. 

Polling shows most rural Americans support more Medicaid funding, not less. The proposal is still being debated in Congress. 

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