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yesterday

Hawley Seeks to Undo Medicaid Cuts He Backed, Bolster Rural Hospitals

A new Senate bill restores provider tax authority by repealing cuts in Trump’s reconciliation law to address CBO forecasts of widespread coverage losses.

Sen. Josh Hawley (R-Mo.) gestures toward a crowd of supporters of President Donald Trump gathered outside the U.S. Capitol to protest the certification of President-elect Joe Biden's electoral college victory Jan. 6, 2021 at the US Capitol in Washington, DC. Some demonstrators later breached security and stormed the Capitol.
Sen. Josh Hawley, R-Mo., talks with reporters after the Senate luncheons in the Capitol on Tuesday.
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Overview

  • Senator Josh Hawley introduced the Protect Medicaid and Rural Hospitals Act to repeal provider tax limits and state-directed payment caps from the recently enacted reconciliation law.
  • The legislation would double the rural health transformation fund from $50 billion over five years to $100 billion over ten years to support underfunded rural hospitals.
  • The CBO and peer-reviewed studies estimate 7.6–14.4 million Americans could lose Medicaid by 2034, leading to over 1,000 excess deaths annually and placing hundreds of rural hospitals at risk of closure.
  • Democrats, including Rep. Ted Lieu and Sen. Chris Coons, denounced Hawley’s move as hypocritical, highlighting that he voted to enact the very Medicaid slashes he now aims to reverse.
  • Although most Medicaid reductions take effect in 2027–28, health advocates warn that immediate planning is essential to avert revenue shortfalls, service cuts and broader economic harm in vulnerable communities.