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Working Families Tax Cut Legislation Resource Center

Partnership for Medicaid Lays Out Concerns Over H.R. 1’s Medicaid Cuts

December 2, 2025
Julie Kozminski

The Partnership for Medicaid expressed concerns regarding H.R. 1’s Medicaid provisions, including eligibility determinations, state directed payments (SDPs), provider taxes, and community engagement requirements, in a Nov. 20 letter to the Centers for Medicare & Medicaid Services (CMS). America’s Essential Hospitals signed on to the letter, along with 15 other organizations.

The Partnership for Medicaid is a nonpartisan, nationwide coalition of organizations representing clinicians, health care providers, safety net health plans, and counties with a goal of preserving and improving the Medicaid program.

The letter urges CMS to use data matching to the maximum extent to ensure eligible Medicaid enrollees stay enrolled, and asks that states have the maximum flexibility to comply with the letter of the law regarding new Medicaid cost sharing provisions in a way that does not burden Medicaid providers.

Further, H.R. 1 placed limits on the total payment rate for SDPs. In recent preliminary SDP guidance on implementation, CMS indicated that the agency plans to include facilities beyond the four services listed in H.R. 1: inpatient care, outpatient care, nursing home services, and practitioner services at academic medical centers. The letter urged CMS to place only the limitations described in the statue.

The letter also asked CMS to allow for a three-year grace period and timely technical assistance to help states come into compliance with new tax uniformity requirements.

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.