GOP Senators Sound Alarm: Mega-Bill’s Medicaid Cuts Threaten Rural Hospitals

WASHINGTON — Senate Republican leaders expressed optimism on Tuesday about overcoming various concerns regarding the party’s comprehensive tax and spending legislation, which they aim to pass before the Fourth of July. Significant discussions have taken place over the past weeks, with recent meeting revelations from the Finance Committee raising fresh apprehensions.

Notably, the proposed changes to Medicaid policy have sparked debate. Some GOP senators are voicing objections, emphasizing that these changes could negatively impact rural hospitals. Senate Majority Leader John Thune of South Dakota highlighted that reducing the Medicaid provider tax rate from 6% to 3.5% by 2031 is a key reform that could enhance the program’s efficacy.

“These reforms are critical for ensuring that Medicaid serves its intended purpose,” Thune noted. He acknowledged ongoing concerns from party members regarding specific components of the legislation and confirmed efforts to address them.

Senators from various states articulated their worries during interviews. Missouri’s Josh Hawley firmly opposes the proposed tax rate change, advocating for the reintroduction of an amendment to maintain the current rate. Hawley warned, “If we proceed with the bill as it stands, rural hospitals in Missouri could face closure.”

West Virginia’s Jim Justice echoed similar sentiments, expressing reservations about the Finance Committee’s plans. He remarked, “We need more time to work through the complexities of this bill.” Justice emphasized that he does not intend to support any legislation that he feels isn’t correct.

On the other hand, Alaska’s Lisa Murkowski, whose state does not utilize the Medicaid provider tax, signaled her concern over other proposed Medicaid modifications, suggesting the bill will undergo significant revisions before reaching a floor vote. “I don’t think it will remain unchanged,” she stated.

Meanwhile, Wisconsin’s Ron Johnson voiced his intentions to vote against the bill if it is rushed for a vote next week, underscoring the importance of careful consideration. He indicated that hastening the process could jeopardize the bill’s success.

In a noteworthy shift, Senate Republicans plan to increase the nation’s debt ceiling by $5 trillion, which surpasses House GOP proposals by $1 trillion. Sen. John Boozman from Arkansas indicated that if the Senate does not vote by June 23, they would remain in session rather than taking a break for the Fourth of July, a decision that could complicate the legislative agenda.

Chuck Grassley from Iowa refrained from commenting on the new Medicaid provisions, promising to provide input after further discussions. In contrast, Senator James Lankford hailed certain aspects of the bill, including permanent long-term tax policies and provisions aimed at enhancing border security and modernizing infrastructure.