Arizona Healthcare Advocates Sound Alarm on Trump’s ‘One Big Beautiful Bill’ Threatening Hospital Closures

As Republican leaders in the U.S. House of Representatives work to secure votes for a recently passed budget package from the Senate, Arizona healthcare advocates are raising alarms about severe financial repercussions for the state. According to the Arizona Hospital and Healthcare Association, the Medicaid cuts included in the bill could result in a staggering loss of $6 billion over the next seven years, putting over 55% of Arizona’s hospitals at risk of financial instability.

The association cautioned that hospitals might have to limit vital services such as obstetrics and behavioral healthcare, and in worst-case scenarios, some could close entirely. This reduction in services will impact the entire community, extending beyond just Medicaid beneficiaries.

Republican U.S. Rep. Juan Ciscomani, representing Southern Arizona’s District 6, previously voiced opposition to certain provisions in the Senate’s budget plan. He challenged the proposed reductions in federal matching funds for Medicaid and the lower caps on hospital taxes intended to sustain the program. After casting a critical vote that led to the bill’s narrow passage, Ciscomani claimed success in advocating for Arizona’s interests, suggesting his efforts mitigated some detrimental changes.

The Senate’s proposal, which narrowly passed by a 51-50 vote, includes significant cuts to federal matching funds and reductions in provider taxes, which are essential for funding the state’s share of Medicaid costs. The Congressional Budget Office (CBO) estimates that the plan could trim Medicaid spending by $1 billion over the next decade, while also reducing eligibility, potentially affecting 11.8 million individuals.

Ciscomani’s advisor, C.J. Karamargin, confirmed that Ciscomani remains opposed to changes in matching funds. As discussions continue, the implications of the Medicaid revisions could lead Arizona to face additional expenses of approximately $1 billion annually to maintain coverage under the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid program.

Will Humble, Executive Director of the Arizona Health Care Association, pointed out that the proposed changes would be a double blow: reducing the federal match will create a financial shortfall, while the halving of the provider assessment from 6% to 3% would further strain funds. He expressed skepticism about whether the state legislature would allocate funds from the general budget to cover this additional expense for the 550,000 residents dependent on Medicaid.