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WARREN COUNTY, OH -- This week, Representatives Greg Landsman along with Raul Ruiz (D-CA-25), Robin Kelly (D-IL-02), and Debbie Dingell (D-MI-06), – members of the House Energy and Commerce Committee – introduced H.R.4807 – the Protect Our Hospitals Act – legislation to repeal a section of the One Big Beautiful Bill Act that drastically cuts funding for hospitals.
One of the most damaging provisions of the One Big Beautiful Bill is a change to Medicaid Provider Taxes, which are fees that 49 states levy on hospitals and other healthcare providers. These fees allow states to fund their Medicaid programs, and secure additional matching Medicaid funding from the federal government. Hospitals support these Medicaid Provider taxes because they allow states to bring in more federal Medicaid funding, which is used to help hospitals cover the cost of the care they provide.
Previously, federal law allowed states to levy a fee on hospitals of up to 6 percent of patient revenue. The One Big Beautiful Bill, however, lowers that fee to a maximum 3.5 percent by 2032. As a result, states will struggle to generate the revenue they need to fund their Medicaid programs – forcing them to reduce payments to hospitals, reduce Medicaid coverage, or raise state taxes.
“Millions of Americans are going to lose their healthcare due to Trump’s budget bill. Hospitals will be particularly hard hit by the One Big Beautiful Bill Act, which cuts their funding in order to pay for tax cuts for the super wealthy. Our commonsense bill is the first step to protecting our hospitals, protecting Medicaid, and protecting millions of Americans’ healthcare," said Landsman.
The Protect Our Hospitals Act – endorsed by the national Children’s Hospital Association – repeals the Medicaid Provider Tax provision of the One Big Beautiful Bill entirely, allowing states to continue generating the revenue they need for their Medicaid programs.
The full text of the Protect Our Hospitals Act can be found here.