California Today

States Consider Aid for Hospitals Amid Medicaid Cuts

05 May 2026 06:55

Hospitals across the U.S. are bracing for financial hardship due to federal Medicaid cuts.

- The One Big Beautiful Bill Act cuts $911 billion from Medicaid over 10 years, potentially increasing the uninsured by 14 million. - MLK Community Hospital in Los Angeles faces an $80-100 million annual shortfall.

- California, Pennsylvania, and Illinois are proposing state loan programs to help distressed hospitals. - Some lawmakers question whether loans effectively become grants, while budget constraints complicate funding.

State action may provide temporary relief, but long-term sustainability remains uncertain.

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