President Donald Trump’s One Big Beautiful Bill Act was signed into law July 4 and includes major cuts to Medicaid, according to a report by the Associated Press. The bill will require Medicaid holders to work 80 hours a week, as well as increase eligibility checks from once a year to twice a year.
The rollout of these funding cuts varies; however, work requirements and increased eligibility checks are expected to take effect towards the end of 2026, according to the OBBBA.
Though these cuts will take time to fully roll out, many worry about potential hospital closures in the near future. Hospitals in rural areas are specifically at risk.
Ohio University’s Department of Social and Public Health associate professor, Dr. Cory Cronin, spoke on how reliant rural populations are on Medicaid.
"When it comes to the proportion of patients that a hospital serves that are on the Medicaid program, you're going to see rural hospitals disproportionately serving a Medicaid population compared to the other types of insurance,” Cronin said.
The Cecil G. Sheps Center for Health Services Research at the University of North Carolina at Chapel Hill conducted research and sent a letter informing Senate Democrats of the effects the funding cuts could have on rural hospitals.
The letter compiled financial data from hospitals in the past, analyzing years of unprofitability and hospitals at the highest risk of financial distress.
U.S. Sens. Edward Markey, Ron Wyden, Chuck Schumer and Jeffrey Merkley, who requested this data, sent a letter to President Trump, Senate majority leader John Thune and Speaker of the House Mike Johnson.
The letter informed the Republican politicians of the importance of safeguarding rural hospitals, outlining 83 hospitals across the country that are at-risk of closure, including 11 in Ohio.
Two hospitals located in Southeast Ohio, the Holzer Medical Center in Jackson County and Southern Ohio Medical Center in Scioto County, were named on the list.
Counties in Southeast Ohio tend to have higher rates of Medicaid recipients than other regions of the state, according to a 2023 study from Georgetown University.
The Ohio Hospital Association is not aware of any hospitals closing as a result of the OBBBA, according to Director of Media and Public Relations John Palmer.
Political commentator Lisa Parker resides in Jackson County and commented on the impact these cuts will have on the local community.
“A lot of these people, I don't think, have grasped what's keeping their family afloat are benefits that are being cut, and they're going to feel these cuts next fall,” Parker said.
According to an Associated Press article, around 10 million people are expected to lose their health insurance as a result of this bill.
Marjie Shew, a farmer in Morgan County, said more people will be uninsured, sharing what she thinks the impact of the cuts will be on the local community members who are on Medicaid.
“Those people die sooner,” Shew said. “That's basically what happens, they don't get the attention they need until they're debilitated.”
Cronin mentioned an additional concern for potential closures of rural hospitals. He noted that many businesses in local communities can stay open because a hospital is their biggest employer.
"If we lose these hospitals that are anchors to their community, the entire community shifts,” Cronin said. “There are less job opportunities, there's less money in the economy. And I really think it's important to look at the entire community effect when we lose something as important as a hospital.”
Cronin also stated that even without closures, many rural hospitals are being forced to eliminate parts of the services they provide. He specifically mentioned the maternity desert crisis in Ohio, a trend where hospitals are suspending labor and delivery to stay open.
The OBBBA also claims to include a 50% increase in funding for rural hospitals. Some argue the money will not be enough to combat the Medicaid cuts. Dr. Cronin spoke on this funding.
“There is concern that that does not match the cuts that rural hospitals are likely to face in the near future,” Cronin said.
