Critique - Bill Straub: Enhancement for Medicaid care of 1.3 million Kentuckians not evident by Bill's plan
Kentucky Hospital Association Speaks Out Against Medicaid Cuts in One Big Beautiful Bill
The Kentucky Hospital Association (KHA) has recently voiced its concerns about the One Big Beautiful Bill, a legislative proposal that could significantly impact Medicaid funding and healthcare access in the state. Despite earlier acquiescence, the KHA is now speaking out against the bill, stating that cuts to Medicaid funding would create irreparable harm for vulnerable communities.
The One Big Beautiful Bill, currently in the Senate, could cut federal funding for Medicaid by $793 billion, as estimated by the Kaiser Family Foundation. This proposed reduction could result in 180,000 to 240,000 Kentuckians becoming uninsured under the proposed changes in Medicaid, according to the same source.
One of the key concerns for the KHA is the elimination of the Hospital Rate Improvement Program (HRIP), a Medicaid-funded initiative that allows hospitals to access additional federal funding without state funds. The bill ends HRIP in 2028, which could lead to Kentucky hospitals operating at a -7% margin, risking access to care, according to KHA president, Nancy Galvagni.
However, the KHA's stance is not universally shared. The American Hospital Association (AHA) and American Medical Association (AMA) are against the bill, stating that it limits access to care for millions of low-income Americans. They argue that the bill's significant cuts to Medicaid funding overall—$964 billion nationwide over a decade—and reductions in provider taxes and state-directed payments used to boost reimbursements would financially strain hospitals.
The KHA's support for the bill appears to be a more localized strategic acceptance. While the bill threatens Medicaid funding and coverage for many Kentuckians, the KHA may believe that pragmatic engagement with the bill's new funding programs, such as rural healthcare grants and transitional Medicaid funding mechanisms, offers the best path to sustaining hospitals in Kentucky's rural areas amid coming federal budget constraints. Hospital leaders are already planning substantial annual cuts to adapt, showing the KHA's position is informed by an urgent need to mitigate harm rather than endorse the funding reductions themselves.
In summary, the Kentucky Hospital Association supports the One Big Beautiful Bill due to programs like HRIP and rural healthcare grants tied to the bill, which they view as essential for survival despite Medicaid cuts. On the other hand, the American Hospital Association and American Medical Association oppose the bill due to overall large Medicaid cuts, reduced reimbursements, and expected loss of coverage for millions nationally. The Senate is also considering changes to state-directed payments as well.
- The Kentucky Hospital Association (KHA) has publicly expressed its opposition to the One Big Beautiful Bill, a legislative proposal that could diminish Medicaid funding and healthcare access in Kentucky.
- The One Big Beautiful Bill, under consideration in the Senate, could reduce federal Medicaid funding by $793 billion, potentially leading to 180,000 to 240,000 Kentuckians losing their insurance.
- A significant concern for the KHA is the bill's termination of the Hospital Rate Improvement Program (HRIP), a Medicaid-funded initiative that provides extra funding to hospitals, which could result in Kentucky hospitals having a -7% operating margin and potentially compromising access to care.
- The American Hospital Association (AHA) and American Medical Association (AMA) also oppose the bill, asserting that it undermines access to care for millions of low-income Americans by significantly reducing Medicaid funding nationwide and decreasing reimbursements.
- In contrast, the KHA's support for the bill might be a strategic move to adapt to federal budget constraints, as it incorporates programs like rural healthcare grants and transitional Medicaid funding mechanisms that they deem essential for rural hospitals' survival, despite the proposed Medicaid cuts.
