Federal budget bill could strip 300K Pennsylvanians of Medicaid coverage, push rural hospitals to the brink
The federal budget proposal, which passed the
While supporters of the budget bill argue that it will slow spending and safeguard government programs, critics say the cuts and new requirements will create more paperwork for states and make it harder to access essential care. Opponents also argue the changes would push struggling rural hospitals and other providers to the brink, and force them to scale back services or close entirely.
More than 3 million people in
More than 737,000 Medicaid recipients live in rural counties, where residents are typically older and more reliant on government-funded insurance programs. Such programs reimburse at lower rates compared to private insurance companies and haven't kept up with inflation.
"That's why we have struggling hospitals," he told Spotlight PA.
On average,
"Medicaid plays a vital role in the health of rural residents, and it is important to preserve this funding so that families can continue to access the care they need for healthier lives," said
Penn Highlands President and CEO
Still, the health system has shuttered services and reported operating losses over the past year.
Winner said Penn Highlands is "greatly concerned" about the proposed Medicaid cuts.
"Rural hospitals have experienced substantial cost increases for labor, drugs, and supplies," he said in a statement. "Coupled with decreasing volumes, inadequate reimbursement rates, and ongoing staffing shortages — recruitment and retention — we are struggling financially."
Advocates worry the cuts in the federal budget will force rural hospitals to slash services even more or close altogether. And once facilities end a service or shut down, they rarely reopen, Stallings told Spotlight PA.
Community health centers could also be strained. These facilities, also known as federally qualified health centers, provide services regardless of someone's ability to pay and primarily see patients who use Medicaid and PENNIE, the state's Affordable Care Act marketplace.
More uninsured people will likely lead to an increase in uncompensated care, said
A surge in demand could cause these health centers to shutter core services — such as medical, dental, or behavioral health — reduce hours, or close, Kiehl said.
Medicaid spending totaled roughly
Democratic Gov.
McCormick did not respond to a request for comment for this story. He has expressed support for the budget bill, which he says will reduce and slow government spending. During a
Fetterman called the plan "a bad bill," telling Spotlight PA in a statement: "


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