New Federal Limits Could Cut $60 Billion in Medicaid Hospital Payments
News Context
At a glance
- Once new regulations are fully in effect, roughly $60 billion in federal Medicaid expenditures spanning 37 states plus the District of Columbia is projected to surpass upcoming federal...
- The projected shortfalls stem from federal rules governing state directed payments.
- According to the KFF analysis, the fiscal impact will not be distributed evenly across the country.
Medicaid Funding Faces a $60 Billion Crunch
Once new regulations are fully in effect, roughly $60 billion in federal Medicaid expenditures spanning 37 states plus the District of Columbia is projected to surpass upcoming federal caps on state directed payments for hospital care, based on a recent KFF report.
The projected shortfalls stem from federal rules governing state directed payments.
Uneven Fiscal Impact Across 37 States
According to the KFF analysis, the fiscal impact will not be distributed evenly across the country.
California, Illinois, Kentucky, Texas, North Carolina, Louisiana, Arizona, and Michigan rank among the states facing the largest potential drops in Medicaid funding for hospitals.
Pressure on Safety-Net and Rural Institutions
Navigating the Complex Regulatory Transition
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