Big Beautiful Bill: Medicaid Cuts Approved in July 2025

Big Beautiful Bill: Medicaid Cuts Approved in July 2025 📉

• What is the Big Beautiful Bill?The One Big Beautiful Bill Act (OBBBA) was signed into law by President Trump on July 4, 2025, pairing sweeping tax cuts with historic social safety net reductions, including over $1 trillion in Medicaid and SNAP cuts over ten years

• How much was cut?Medicaid funding is being slashed by roughly $1.0–1.2 trillion over the next decade—either $1.02 trillion or more, per estimates from KFF, CBO, and media expert

• Who’s impacted the most?Low-income families, children, pregnant people, seniors, and people with disabilities are expected to bear the brunt—millions could lose access to care or face reduced benefits

  

  Hospital facility entrance

• Timeline of implementation:

  • Law passed: Congress voted in early July; signed July 4, 2025 .

  • Some provisions take effect in 2026, while deeper cuts ramp up in 2027 and beyond .

• Key provisions driving the cuts:

  • Enacting work requirements for Medicaid recipients aged 19–64 (80 hours/month), with limited exemptions .

  • Increasing fees (up to $35 per service) for those earning between 100–138% of the federal poverty level .

  • Mandating eligibility checks every six months instead of annual reviews .

  • Capping provider taxes and banning certain state-directed payment schemes .

  • Cutting off Medicaid funding to nonprofits that provide abortion care (currently paused by court injunction) .

  • Reducing retroactive coverage: From three to one month starting in 2027, increasing debt risk for seniors and rural users .

• Impact on hospitals, especially rural:

  • Over 300 rural hospitals face immediate closure, with more than 700 at risk due to funding loss .

  • Virginia alone may lose up to $26 billion over 14 years, severely straining local hospital operations .

  • States are scrambling to allocate state-level relief or shielding measures amid the shortfall .

• Projected loss of coverage:The Congressional Budget Office estimates 7.8 million to 11.8 million Americans may lose health insurance as a direct result of the cuts and associated policy changes .

💡What does this mean for you...

These changes represent the largest rollback of health care access in decades. The ripple effects could exacerbate rural healthcare deserts, drive up uncompensated care costs, and increase premiums for insured populations.