MITCHELL, S.D. (MITCHELLNOW) South Dakota has nearly ten rural hospitals at risk of closing. Health policy analysts say it’s a problem that might worsen under Medicaid cuts tied to what was known as the One Big Beautiful Bill Act.
The big federal spending bill signed by President Donald Trump has been a major priority for his administration and Republican lawmakers. But before and after its passage, large-scale changes to programs like Medicaid – to offset tax-cut extensions – have stood out to industry experts.
Louise Norris, health policy analyst with the independent research site Healthinsurance.org, said if nearly 12 million people lose Medicaid coverage, as predicted, a grim picture could come into focus for rural areas.
“If the one hospital there has very thin margins and Medicaid cuts force it to either pull back services, or if the hospital closes altogether,” said Norris, “the people in that area might have to drive four hours to get to other hospitals.”
Industry groups say more people in rural communities get Medicaid coverage than their urban counterparts. And Norris said when patients are forced to travel for care, hospitals in bigger cities nearby have to absorb the demand.
Estimates of Medicaid coverage loss are from the nonpartisan Congressional Budget Office, with some provisions starting within the next two years.
Republicans argue the estimates are wrong, saying they’re trying to keep safety-net programs intact for the most vulnerable Americans.
Analysts point to other complications if Congress doesn’t extend higher subsidies for people who get their coverage through health insurance marketplaces under the Affordable Care Act. Those expire at the end of the year.
Norris said no matter where you live, people with private insurance would likely notice premium changes because emergency departments will see more uninsured patients.
“That oftentimes turns into uncompensated care for the hospitals,” said Norris. “That has to get paid for somehow, so that gets shifted into higher premiums for everyone – for people with commercial insurance, for employers.”
Ben Hanson tracks health policy as government relations director for the American Cancer Society Cancer Action Network for North and South Dakota. He said he wonders if the labor force, namely for smaller businesses priced out of the market in these rural states, will feel the pinch.
“If some of their employees can’t access insurance through Medicaid and they need to switch, they’re going to be looking to go to bigger companies,” said Hanson, “or maybe moving out of state to some other place that has more state-subsidized health care.” For more Government stories from MitchellNow.com, Click Here.