President Trump aims to expand Medicaid cuts based on tax cut bill

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Hospitals and other health care providers are bracing for an end to the extra money they earn for treating Medicaid patients, one of many cuts included in Republicans’ sweeping 2025 tax bill.

But the Trump administration this week unveiled plans to further widen the cuts to so-called state-mandated payments, setting the stage for a likely showdown with provider groups.

Starting in 2024, some hospitals, doctors, nursing homes and other types of health care providers will be reimbursed at much higher commercial rates for Medicaid services, thanks to Biden-era changes. The One Big Beautiful Bill Act, passed in July, directs the Centers for Medicare and Medicaid Services to phase out these payments until they are close to or comparable to Medicare rates starting in 2028.

STAT+ exclusive story