The proposed Medicaid policy changes included in the Senate Finance Committee’s budget reconciliation bill are projected to increase hospital uncompensated care costs by at least $84.0 billion in 2034, which is $41.7 billion more than the amount projected under the House-passed One Big Beautiful Bill Act (H.R. 1).
Between 2025 and 2034, we find that both proposed cuts in Medicaid payments and additional costs for uninsured individuals will add $443.4 billion to hospitals’ uncompensated care costs over the ten-year period.
Although essential hospitals account for just 5% of hospitals nationally, we estimate that they would bear approximately 25% of the added hospital unpaid costs of care. This would amount to an additional $20.8 billion in cuts to essential hospitals in 2034 and $110.3 billion over the ten-year period from 2025 to 2034.
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