President Trump's "One Big Beautiful Bill" Passes House, Promising Cuts to Medicaid

July 7, 2025
The enormous cuts to Medicaid will likely negatively impact quality of care at many hospitals, especially those in rural areas, which may be forced to shut down or reduce what they provide.

The American Hospital Association published a statement following the passage of President Trump’s so-called “One Big Beautiful Bill” in the House of Representatives last week.

Rick Pollack, the president and CEO of the AHA, wrote that “Congress has enacted cuts of nearly a trillion dollars to the Medicaid program” despite “months of clearly demonstrating the implications that these Medicaid proposals will have on the patients and communities [they] serve.” The organization emphasizes that the magnitude of these reductions “and the number of individuals who will lose health coverage” should not be dismissed.

Reporting from Politico lays out objections from certain legislators about the bill’s impact on healthcare and Medicaid specifically. Certain Republican politicians, like senator Susan Collins of Maine, opposed the bill because of the “’harmful impact’ Medicaid cuts would have on low-income families and rural healthcare providers.” The bill “delivered a $1 trillion-plus cut to healthcare programs and could lead to an estimated 11.8 million people losing their insurance.”

A story from NPR laid out how the bill’s passage will result in less care in rural communities. The bill slashed taxes used to pay healthcare institutions in some states. Rural hospitals “typically operate on thin profit margins and rely on payments from Medicaid taxes to sustain them.” Researchers found that the bill could “push more than 300 rural hospitals…toward service reductions or closure.”

About the Author

Matt MacKenzie | Associate Editor

Matt is Associate Editor for Healthcare Purchasing News.