If you or someone you love depends on your local hospital for care, some big changes to Medicaid funding could soon affect your community.

 

On July 4, President Trump signed the “One Big Beautiful Bill” (OBBB) into law. While the bill provides sweeping tax cuts, it also introduces major reductions to federal Medicaid spending. These cuts could have serious consequences for rural hospitals and health care facilities across the country, and for families who count on them.

 

At Bellomo & Associates, we know how vital access to medical care is for aging adults, caregivers, and families. As the long-term effects of this new law unfold, here is what you should know today and what you can do to protect yourself and the people you care about.

 

Why Rural Hospitals Are at Risk

Many rural hospitals rely heavily on Medicaid reimbursements to keep their doors open. The new law includes an estimated $1.02 trillion cut to Medicaid over the next ten years. According to the Center for Healthcare Quality & Payment Reform, these cuts could put more than 700 rural hospitals, nearly one-third of all rural hospitals in the United States, at risk of closing.

 

In some states, the situation is even more alarming. For example:

• In Kansas, up to 66 rural hospitals are at immediate risk of closing, with even more expected to reduce services.

• Texas could see up to 108 rural hospitals cut services, with 29 at immediate risk of closure.

• Other states facing significant impact include Oklahoma, Alabama, Mississippi, Missouri, and West Virginia.

If more hospitals close, residents in rural areas may have to travel much farther for emergency care, inpatient treatment, and other critical services. That creates additional challenges for seniors, people with disabilities, and those managing chronic conditions.

 

Is There Any Help for Hospitals?

The OBBB does include $50 billion in temporary funding over six years to help rural hospitals transition. This money will be distributed through a new Rural Health Transformation Program starting in 2026. The goal is to help facilities develop long-term plans to remain open and financially stable.

 

However, many experts believe this funding falls short of what is needed to cover the losses from Medicaid cuts. Even with the program, many hospitals will still face tough choices about cutting services or closing altogether.

 

What This Could Mean for You

If you live in a rural area or rely on a hospital that serves a large number of Medicaid or CHIP patients, you may see changes in your access to care in the next few years. Possible outcomes include reduced services, longer travel times to reach care, and slower emergency response times if your closest hospital closes.

 

We know this is a lot to take in, especially for older adults, people with disabilities, and caregivers, but the good news is that you can take steps now to prepare and protect yourself from potential disruptions.

 

How We Can Help You Plan Ahead

At Bellomo & Associates, our elder law and estate planning team helps families plan for their health care needs and prepare for the unexpected. Together, we can help you:

• Draft or update powers of attorney and health care proxies so someone you trust can make medical decisions if you cannot.

• Review long-term care options and local resources so you know what alternatives exist if your local hospital reduces its services.

• Understand Medicaid eligibility and create a plan that protects your assets while ensuring you can get the care you need.

• Get your legal and financial affairs in order so you and your family can focus on what matters most, even in uncertain times.

Our mission is to help you protect your health, your finances, and your peace of mind, no matter what the future holds.

 

Stay Informed and Take Action

State governments are expected to begin applying for Rural Health Transformation Program funding later this year, and we should learn more about how each community will be affected in the coming months. We encourage you to stay informed and take a proactive approach to planning.

 

Now is the perfect time to review your plans and make sure you and your loved ones are ready for whatever comes next.

 

We invite you to register for a workshop with our team to learn how you can protect yourself and your family with confidence.