Increased Number of Uninsured Individuals May Push Local Healthcare Facilities to Their Limit
In the heart of Texas, a largely rural, Hispanic community named Starr County made headlines in 2024 when it voted Republican in a presidential election for the first time in over a century. However, the economic situation of hospitals, doctors, and other healthcare providers in Starr County, and similar communities, is facing a challenging future due to recent healthcare policies.
The Trump administration's budget request for the coming fiscal year calls for cuts to multiple rural health programs operated through the Health Resources and Services Administration. These cuts cap federal programs that many health providers for low-income people have come to depend on, especially in rural areas.
One such program is Medicaid, a state-federal program designed to cover those with low incomes and disabilities. Many Republicans have argued that Medicaid has grown too large and strayed from its core mission. A recent survey found that nearly half of rural facilities could close or restructure due to Medicaid cuts.
The new tax-and-spending law, known as the One Big Beautiful Bill Act, is expected to result in approximately 14 million fewer Americans having health insurance within a decade. This, coupled with the pending expiration of enhanced subsidies that slashed the price of Affordable Care Act plans for millions of people, is causing concern among rural healthcare providers.
In Starr County, many residents treat the ER as their first stop when they're sick, leading to overcrowding and increased costs due to the neglected health conditions of the patients. The economic situation of these providers is mainly influenced by local and state healthcare policies, funding mechanisms, and insurance coverage rates impacting the financial resources available to them.
The Trump administration's cuts to healthcare and Medicaid, in the name of eliminating 'waste, fraud, and abuse,' have many concerned they won't weather the additional financial strain. The administration is also cutting other support that helped offset the cost of care for people who can't pay, including taxes on hospitals, health plans, and other providers.
Public health departments, which often fill gaps in care, face federal funding cuts that have reduced their capacity. The One Big Beautiful Bill Act limits programs that send billions of dollars to help those who care for uninsured people stay afloat. In South Texas' Cameron County, the health department has eliminated nearly a dozen positions. In neighboring Hidalgo County, the health department has laid off more than 30 people.
Maria Salgado, a community health worker, worries that funding cuts would leave many community members without access to health insurance. The new law creates a temporary $50 billion fund to support rural doctors and hospitals, but this is less than the estimated Medicaid funding losses in rural areas, according to KFF.
In July, the Texas Department of State Health Services canceled Operation Border Health, a massive annual event that provided free health services to nearly 6,000 South Texas residents. The cancellation of such events and the potential closure of rural facilities could leave many residents without access to essential healthcare services.
As the future of rural healthcare in America hangs in the balance, concerns about the impact of these policies on the health and well-being of millions of Americans continue to grow.
