Hospitals Urge Lawmakers to Reconsider Medicaid Cuts

The Nebraska Hospital Association is asking federal lawmakers to revisit cuts to Medicaid funding that could affect hospitals across the state.

Updated on Nov. 6, 2026 in Nursing Jobs

Bold flat-color editorial illustration of a plain hospital wing block on open prairie under a pale sky, with a stack of coins at its base, in deep red, cream, and slate. — The Nebraska Hospital Association urged federal lawmakers on Thursday to reconsider Medicaid cuts in a July 2025 tax and spending bill that could strain hospitals statewide. AI Illustration. Upload story photo >

Live Poll

Should Congress reverse the recent cuts to Medicaid funding?

The Nebraska Hospital Association issued a statement Thursday calling on federal lawmakers to reconsider Medicaid cuts enacted through a Republican-led tax and spending bill passed in July 2025. The state's Department of Health and Human Services has also proposed reductions to optional Medicaid services and provider reimbursement rates.

Why it matters

The federal bill cut Medicaid funding by nearly $1 trillion over 10 years and restricted enrollment, while Nebraska's budget faces a shortfall as federal support declines. The outcome will shape hospital finances and patient access across the state, particularly in rural areas.

Federal Medicaid cuts total nearly $1 trillion over 10 years, while Nebraska's state-directed payment program brings in about $1 billion per year. A Nebraska Hospital Association poll found 91% of residents view Medicaid funding as a legislative priority, though the stub does not detail how the proposed state reductions would be quantified.

The players

Nebraska Hospital Association

The statewide trade group representing Nebraska hospitals, which commissioned polling on public support for Medicaid funding and hospital aid.

Nebraska Department of Health and Human Services

The state agency responsible for administering Medicaid in Nebraska, which has proposed cuts to optional services and provider reimbursement rates.

The details

The hospital association's written statement, from its president and CEO, asks Congress to revisit the cuts. Nebraska implemented Medicaid work requirements in August, and most non-citizens and able-bodied adults now face new restrictions under federal rules.

July 2025: Congress passed the tax and spending bill cutting Medicaid funds.
August 2025: Nebraska implemented Medicaid work requirements.
Thursday, November 5, 2026: Nebraska Hospital Association issued its statement.

Policy Context

Nebraska's pushback comes after the July 2025 federal tax and spending bill cut Medicaid by nearly $1 trillion over a decade and restricted enrollment for non-citizens and most able-bodied adults. The state now faces its own budget shortfall as federal Medicaid support declines, leaving hospital and provider funding under pressure.

Patients relying on Medicaid in Nebraska could face narrower coverage or reduced provider reimbursement if the proposed state cuts take effect. Rural residents may be most affected by changes to access and hospital services.

The takeaway

Medicaid funding decisions made in Washington and Lincoln directly shape how much care hospitals can provide and what services patients can count on. Residents who depend on these programs should watch for changes to covered services and reimbursement rules as the next legislative session approaches.