U.S. Senator Josh Hawley | Official U.S. Senate headshot
U.S. Senator Josh Hawley | Official U.S. Senate headshot
Today, U.S. Senator Josh Hawley (R-Mo.) introduced legislation aimed at bolstering rural hospitals and safeguarding Medicaid hospital funding from future cuts. The new bill builds on provisions that Senator Hawley secured in a recent reconciliation bill, focusing on doubling federal investment in rural healthcare and reversing potential changes to Medicaid hospital funding.
The reconciliation bill established a rural hospital fund for the first time, but also scheduled reductions in states' provider tax authority starting as early as 2028. States use provider taxes to finance Medicaid costs, which helps them access federal funds for critical-access hospitals and rural providers.
"President Trump has always said we have to protect Medicaid for working people. Now is the time to prevent any future cuts to Medicaid from going into effect," stated Senator Hawley. "We should also increase our support for rural hospitals around the country. Under the recent reconciliation bill, Missouri will see an extra $1 billion for hospitals over the next four years. I want to see Medicaid reductions stopped and rural hospitals fully funded permanently."
Senator Hawley's Protect Medicaid and Rural Hospitals Act proposes several measures:
- Repeal of the provider tax moratorium and future reduction of provider tax authority outlined in the reconciliation bill, restoring a crucial aspect of Medicaid funding.
- Repeal of provisions related to state-directed payments that could decrease Medicaid reimbursements.
- Doubling of the total investment in the Rural Health Transformation Fund to $100 billion.
- Extension of the Rural Health Transformation Fund's duration from five years to ten years.
Read the full bill text here.
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