MHA CEO Discusses Impacts Of Medicaid Cuts With Sen. Hawley

MHA President and CEO Jon D. Doolittle met today with U.S. Sen. Josh Hawley in Washington, D.C., to thank him for his leadership in protecting Medicaid and to share the clear consequences of the proposed Senate Finance Committee’s budget reconciliation language.

The committee’s proposed legislation, released as part of the Senate reconciliation bill, includes a significant reduction in the cap on state provider taxes — from 6% to 3.5% over five years — and would limit directed Medicaid payments to Medicare rates over a 10-year period. MHA released an issue brief with additional information.

For Medicaid expansion states like Missouri, where the average provider tax rate has been 5.47% over the last decade and is projected at 5% for July 1, the reduction could result in a loss of more than $1.2 billion annually to Missouri’s Medicaid budget.

Such cuts would harm the one in five adults and two in five Missouri children covered through Medicaid, leading to bed and service closures and numerous hospital shutdowns, especially in rural areas. Twelve rural hospitals have already closed in Missouri since 2014. Nationally, this proposal could disrupt care for more than 70 million Americans, impacting 150 million annual emergency department visits and nearly 35 million hospital admissions, many of which serve seniors.

In response, MHA joined 11 other state hospital associations in sending a letter to Senate leaders urging a “no” vote on the proposed Medicaid reductions. Member hospitals are encouraged to take action by contacting their senators and joining advocacy efforts such as the AHA’s Coalition to Strengthen America’s Healthcare, which is working to protect access to care and maintain the financial stability of hospitals across the country.