Health Care

New analysis reveals scale of pending hospital payment limits for states

States receive nearly $100 billion annually in supplemental federal Medicaid payments to help local health systems.
Cedars-Sinai Medical Center is pictured, late Tuesday, Jan. 5, 2021, in Los Angeles. (AP Photo/Chris Pizzello)

A new analysis has found that states receive nearly $100 billion annually in supplemental federal Medicaid payments under a mechanism that is about to be severely limited under the One Big Beautiful Bill Act.

That figure, calculated by nonpartisan health policy research organization KFF, is one of the most comprehensive looks to date at the potential impact on states when new rules for so-called state-directed payments are phased in over the coming years.

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