The Gist Healthcare Podcast President Signs Budget Bill With $1T in Healthcare Spending Cuts
Jul 14, 2025
Michael McAuliff, a seasoned politics and policy reporter for Modern Healthcare, delves into the implications of $1 trillion in healthcare spending cuts following the new legislation. He explains how Medicaid cuts evolved into this massive figure through intense negotiations. McAuliff details the tense atmosphere on Capitol Hill, predicts rural hospitals will face significant losses despite a new fund, and discusses how both parties are strategizing their campaign narratives in response to these changes. A must-listen for those interested in healthcare policy!
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Trillion-Dollar Healthcare Cuts Explained
- The One Big Beautiful Bill enacts roughly $1 trillion in federal health-care spending cuts over the next decade, with Medicaid bearing about $940 billion of that total.
- The Senate deepened cuts beyond House proposals by targeting provider taxes and expanding tax cuts, producing larger savings needs.
Political Backlash Risk For Moderates
- Passage surprised some because moderates who opposed large cuts ultimately supported a much larger package than they'd signaled publicly.
- That creates potential political fallout as members must defend votes in swing districts and face buyer's remorse back home.
Rural Fund Added But May Be Insufficient
- Senators added a $50 billion Rural Health Transformation Fund after rural lawmakers pressed concerns about hospital impacts.
- Michael McAuliff noted the fund likely won't fully replace estimated rural hospital losses and requires applications to CMS or states.