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Rural Hospitals Face Renewed Threats as Medicaid Payment Caps Loom

A new federal law, passed under the Trump administration’s 2025 tax and spending legislation, is poised to reconfigure the financial bedrock of the Medicaid program. Tucked inside the sweeping One Big Beautiful Bill Act is a policy shift that will cap state-directed Medicaid payments to hospitals and physicians which are cuts that, according to provider groups and state hospital associations, could devastate already-fragile rural health systems.
September 11, 2025