Hawley introduces AHA-supported bill that would revise Medicaid provisions enacted in One Big Beautiful Bill Act

Sen. Josh Hawley, R-Mo., July 15 introduced legislation that would repeal some of the Medicaid funding reductions included in the recently enacted One Big Beautiful Bill Act. Specifically, the Protect Medicaid and Rural Hospitals Act would repeal provider tax and state directed payment provisions within the OBBBA.

“Your legislation strikes these two sections to mitigate the impact of Medicaid reductions on hospitals and health systems and allow them to continue to serve their patients and communities,” AHA said today in a letter to Hawley expressing support for his legislation.  

Hawley’s bill also would double funding for the Rural Health Transformation Fund from $50 billion to $100 billion and extend the duration of the fund from five to 10 years. The Rural Health Transformation Fund was established as part of the OBBBA.