Overview
- Sen. Josh Hawley filed the Protect Medicaid and Rural Hospitals Act on July 15 to overturn provider tax moratoriums and revoke limits on state-directed Medicaid payments included in the July 4 reconciliation law.
- The proposal would double the Rural Health Transformation Fund from $50 billion over five years to $100 billion over ten years to shore up underfunded rural hospitals.
- The move renews GOP conflicts over the law’s $1 trillion in Medicaid savings and highlights CBO projections of up to 11.8 million coverage losses by 2034.
- With most Medicaid reforms scheduled to take effect between 2026 and 2028, senators are exploring shifts to key implementation dates before cuts begin.
- Republican divisions over provider taxes and rural hospital viability signal potential bipartisan talks to adjust health-care provisions ahead of the phase-in.