Senate GOP Leaders Strive for Solution to Medicaid Concerns for Rural Hospitals

TL/DR –

Senate GOP leaders are attempting to address concerns surrounding the impacts of the Medicaid provisions in their bill. A draft proposal could introduce a $15 billion fund for rural hospitals, though critics argue this figure is inadequate. The proposals could constrain the health care provider fee that states use to fund Medicaid, resulting in funding losses for rural areas.

Senate GOP Leaders Seek Solution for Medicaid Bill Concerns

Senate GOP leaders are devising a final attempt to assuage the concerns of several Republicans about the potential repercussions of Medicaid provisions in their extensive domestic policy bill on their states’ affairs.

“We’re working on a solution for rural hospitals…I think we’re making good headway on that solution,” Senate Majority Leader John Thune, R-S.D., told NBC News.

The Senate Finance Committee, which oversees Medicaid, has drafted a proposal that would establish a $15 billion fund for rural hospitals and providers, per two sources with direct knowledge of the proposal. This could elevate the overall bill’s cost if included.

However, several Republicans – including Senators Thom Tillis of North Carolina, Josh Hawley of Missouri, and Susan Collins of Maine – believe the $15 billion figure is insufficient.

The American Hospital Association, a hospital industry representative, warned that the House-approved legislation might result in a cut of $50.4 billion in federal Medicaid spending on rural hospitals over a decade.

The Republicans’ broader legislation for Trump’s agenda includes restricting the health care provider fee that states use to fund Medicaid, especially in rural areas, aided by the federal government. The GOP asserts this aligns with their crusade against Medicaid “waste, fraud, and abuse” as, according to them, the tax is misused by blue states to provide benefits to undocumented immigrants.

However, the real-world ramifications of these Medicaid amendments could imply billions in funding losses for many rural regions, potentially leading to devastating consequences, as noted by Tillis in a document he shared with fellow Senators.

Senator Bill Cassidy, R-La., said that this fund is a “good way to start” addressing his concerns about the Medicaid provisions under negotiation by his party. Yet, Cassidy expressed he is “leaning towards supporting” the bill, even if the fund remains insufficient to resolve the issue.

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