How Might Federal Medicaid Cuts in the Senate-Passed Reconciliation Bill Affect Rural Areas?

(By Heather Saunders, Alice Burns, and Zachary Levinson for The Kaiser Family Foundation Published: Jul 02, 2025)

Approximately 66 million people – about 20% of the U.S. population – live in rural areas, where Medicaid covers 1 in 4 adults (a higher share than in urban areas) and plays a large part in financing health care services. In rural communities, Medicaid covers nearly half of all births and one fifth of inpatient discharges. The Congressional Budget Office (CBO) estimates that the Senate-passed budget reconciliation bill would reduce federal Medicaid spending by $1.04 trillion over ten years, and result in 11.8 million more uninsured people nationwide. Senators from both parties have raised concerns about potential impacts on rural hospitals and other providers, particularly given the ongoing trend of rural hospital closures. Continue reading here…

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