AHA supports bill to reduce Medicaid cuts

Sen. Josh Hawley, R-Mo., introduced legislation to repeal some of the Medicaid funding reductions in the recently enacted reconciliation package. The Protect Medicaid and Rural Hospitals Act (S. 2279) would repeal provider tax and state-directed payment provisions within the enacted reconciliation package. In a letter to Hawley expressing support for the bill, the American Hospital Association says the legislation would “mitigate the impact of Medicaid reductions on hospitals and health systems and allow them to continue to serve their patients and communities.” Hawley’s bill also would double funding for the Rural Health Transformation Fund from $50 billion to $100 billion and extend the fund’s duration from five to 10 years. The Rural Health Transformation Fund was established in the reconciliation package. (AHA News article, 7/16/25)