Donald Trump’s administration just enacted one of the most controversial pieces of legislation — the “One Big Beautiful Bill.” This bill has failed the public red face test big time. It is poised to reshape the American healthcare costs in profound and lasting ways. Those who have studied the bill are raising alarms that it would appreciably raise costs for working-class families. They further project that it will result in deep reductions in Medicaid funding.
The “One Big Beautiful Bill” calls for around $1 trillion in cuts to Medicaid over the next ten years. The cut in funding would irreparably hurt many Americans. According to one set of projections, almost 12 million people would be uninsured by 2034 due to cuts in Medicaid and the Affordable Care Act marketplace.
In addition, the legislation reduces the annual enrollment period for healthcare coverage by nearly a month. This policy shift makes it more difficult to access the critical services people need. Consumer advocates cease-and-desist letter — the bill, if passed, will make premium more expensive for those who rely on healthcare coverage. This increase will impose new economic hardships on a lot of households.
Impacts on Hospitals and Rural Healthcare
One of the most alarming projections associated with the “One Big Beautiful Bill” is the potential closure of approximately 338 hospitals nationwide. The burden these hospitals feel, already reeling from financial strain, gets doubled down on with deep cuts to Medicaid funding – hitting these rural hospitals especially hard.
In the case of Missouri, rural hospitals are looking at an average 29 percent loss in their Medicaid funding. This draconian cut would mean a 20 percent cut in funding to rural hospitals in at least half the states. Additionally, thousands of hospitals’ margins have already been stretched to near breaking points with these cuts. The American Hospital Association is sounding alarms on the future of access to care.
“Our goal is to help ensure hospitals can remain open for their communities, and people can get the care they need when they need it. Our nation’s health and economic future depend on it.” – American Hospital Association
Myriad experts agree that the impacts of these cuts will be felt far beyond those who directly use and benefit from Medicaid. Bruce Y Lee, a healthcare expert, pointed out that many hospitals and clinics depend on Medicaid funding for their operations.
“There is the mistaken belief that cuts in Medicaid will only affect those on Medicaid. Many hospitals, clinics, and healthcare organisations depend on Medicaid funding for their operations. Therefore, cuts in Medicaid can adversely affect the types and quality of services they provide.” – Bruce Y Lee
Criticism from Political Figures and Healthcare Advocates
The successful enactment of the “One Big Beautiful Bill” has drawn immediate and severe blowback from establishment politicians and corporate healthcare advocates. Former President Barack Obama spoke out against the bill. That’s because he thinks it plunders key pieces of his signature policy, which he views as a critical building block of his legacy. He tweeted about the bill’s long-term effects on American families with his concerns.
“It will increase costs and hurt working class families for generations to come.” – Barack Obama
Earl, a healer and fierce healthcare advocate, expressed similar concerns about how this bill would affect care in the years to come. It concerns me that it will result in catastrophic consequences for American families that depend on our healthcare professionals.
“This will be another branch of a limb of a disastrous tree. I’m concerned about what this means for our future care.” – Earl
Richard Trent, young business owner struggling with increased costs. He testified about the impact this bill will have on the financial security of families like his. He particularly noted that increasing burdens of healthcare premiums increased the fiscal stress. This pressure now more than ever limits young entrepreneurs in their ability to effectively run their businesses.
“If you’re a young business owner, already stretched thin by housing costs, child care bills, and health premiums, this bill just made your future harder.” – Richard Trent
As these criticisms continue to rise, fears of future cuts to Medicare services remain because of the statutory Pay-As-You-Go Act of 2010. A lot of folks are worried that cuts to Medicaid funding will eventually hurt services for Medicare recipients too.
Martha Previte, who relies on both Medicare and Medicaid for her healthcare needs, expressed her fears regarding potential hospital closures. She underscored her own experiences as a type 1 insulin-dependent diabetic.
“I fear that these cuts are going to close hospitals that we rely on to get care, and we’re not going to have anywhere to go.” – Martha Previte
Future Implications of the One Big Beautiful Bill
They calculate that their “One Big Beautiful Bill” would result in a cumulative $490 billion loss in funding access over the next 10 years. However, making such a reduction would disproportionately deepen healthcare disparities negatively impacting communities of color and across the nation.
This year, enrollment in both public and private healthcare exchanges forces consumers to re-verify their contact and identifying information each year. Other policy experts worry this will lead to a significant administrative burden on individuals trying to obtain coverage.
Elizabeth Pancotti lambasted the legislation for pretending it would save Americans money. She was right that in practice, it would mean higher premiums and other out-of-pocket healthcare costs.
“While the President promised to lower costs for Americans, this bill is set to spike premiums and other healthcare costs.” – Elizabeth Pancotti
