The federal government approved $60 billion worth of extra Medicaid funds for hospitals, doctors, nursing homes, and other medical providers in the closing months of 2025 — money that will gradually get cut under Republicans’ tax law.
The new approvals lock in Medicaid payment rates that are on par with the lofty prices paid by commercial insurers until 2028, when the funds will start to dissipate. That means in the near term, for many hospitals across the country, Medicaid will still not always be the dismal payer that they say it is.
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