July 1, 2025
Hillsdale Hospital is calling its rural community to voice resistance against the funding cuts to Medicaid that were passed by the U.S. Senate on July 1, 2025. The Senate passed the bill after a marathon vote that lasted more than 26 hours, starting the morning of June 30 and adjourning around 12 p.m. on July 1. Now, Hillsdale Hospital is asking its community and other rural healthcare providers to speak up regarding the impact of this legislation on health services for vulnerable communities.
The bill cuts $930 billion from Medicaid, compared to the $715 billion previously proposed by the House, according to an analysis done by the nonpartisan Congressional Budget Office (CBO). Those cuts will mainly be made by adding work requirements, which would result in 4.8 million people losing their health insurance, CBO estimates, and implementing a reduction on allowable provider tax rate from 6% to 3.5%. Overall, CBO projects that 11.8 million beneficiaries will become uninsured as a result of the cuts.
“Without the current reimbursement rates provided by Medicaid under the provider tax, rural hospitals will not be able to serve the most vulnerable populations in our country,” said Jeremiah J. Hodshire, president and chief executive officer of Hillsdale Hospital. “Our mothers and infants, our patients needing behavioral healthcare, our full-time workers at family-owned businesses that can’t afford commercial health insurance—these are the families and individuals living in rural areas that Medicaid was designed for, and now, they’ll be the first to lose access to vital healthcare services.”
The Senate considered more than 40 amendments during the recent voting session, but only a few were adopted into the bill. Now, the Senate’s version of the bill must be passed by the House again, a vote that’s expected to occur tomorrow. According to The Hill, this bill calls for the largest cuts to Medicaid that have been made since the institution of the program in the 1960s.
“The cuts being considered by the U.S. senate would result in a loss of $6 billion over the next 10 years for Michigan healthcare providers,” said Laura Appel, executive vice president of government relations and public policy for the Michigan Health and Hospital Association. “This will devastate Michigan’s state budget, leading to the loss of healthcare access and harming our community.”
In Michigan, 27% of the population is enrolled in Medicaid, and the program is known to be the largest payer of obstetric care and behavioral healthcare. However, Hodshire sees the impact as more widespread than eligibility checks.
“When a rural hospital’s access to Medicaid is compromised, it can no longer sustain services to its community,” said Hodshire. “Whether it’s a birthing unit shutting its doors or the entire hospital going under, that access isn’t just lost to the Medicaid population. Everyone in the area, regardless of health insurance, loses that care. In rural counties across the country, that will mean driving an hour or more, in many cases, to get to any kind of healthcare provider. With ambulance services spread thin and urban hospitals serving a higher population of patients, our communities cannot afford to take on these kinds of cuts.”
According to a poll by KFF Health News, 83% of the public view Medicaid favorably and 72% of adults are worried about what cuts to Medicaid will mean for uninsured families.
With a rapidly approaching July 4 self-imposed deadline by President Trump, Hillsdale Hospital urges its community to take action in defending the Medicaid program.
“Contact your legislators,” said Hodshire. “Speak up now because we only have a few days left to stop this legislation’s momentum.”
Those interested in expressing concern over funding cuts to Medicaid can contact their representatives at mha.org if they are Michigan residents or ruralhealth.us.
If you want to learn more about how these changes will affect our hospital and national healthcare system, listen to our latest news updates on Rural Health Today. We invite our community to use this page as a dashboard for the latest news and reports on this issue.
What can you do?
Raise your voice to help us express our concern with cuts to Medicaid. Here’s what you can do to make a difference…
Contact Your Representatives
Visit mha.org or ruralhealth.us to send a pre-written or custom message to your representatives. You can also find your legislator at fiscalnote.com/find-your-legislator and call or email to express your concerns.
Stay Up To Date
As with many legislative issues, we don’t always know when we will receive updates regarding Congressional action. We will update this dashboard as frequently as possible and continue to share resources and stories on our social media platforms. Staying up to date on the latest reports and news items equips us to address misconceptions surrounding Medicaid recipients and the damaging impact of cuts.
Share Your Story
If you have a story to tell about how Medicaid has assisted you or a loved one, we want to help you share that story. Submit the form below or reach out directly to Communications Manager Kyrsten Newlon at knewlon@hillsdalehospital.com.
