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Hospitals stunned by Senate GOP's Medicaid plan

By POLITICO  
   June 18, 2025

Hospital stakeholders were infuriated when Senate Republicans on the Finance Committee released their version of the bill this week. The proposal went even further than the House measure in curtailing the ability of states to impose taxes on providers. States have used those taxes to gain a larger federal Medicaid contribution, which they have then directed back to hospitals with higher reimbursements. The Senate's proposal would lower the amount the 40 states that have expanded Medicaid under Obamacare can levy in provider taxes from 6% to 3.5%. It has hospital lobbyists painting a bleak picture of their financial prospects in a last-ditch effort to change senators' minds.

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