Some Pennsylvania health care experts say they’re worried what will happen to already struggling rural hospitals if there are cuts or changes to Medicare and Medicaid.
Elon Musk has suggested cutting half a trillion dollars from Medicare, Medicaid and Social Security. Last week, Robert F. Kennedy Jr. announced cuts and restructuring to the Department of Health and Human Services, including eliminating 300 jobs at the Centers for Medicare and Medicaid Services.
The Trump administration has repeatedly said it won’t cut Medicare or Medicaid benefits, but these moves have sparked fear, including at rural hospitals.
“Everyone is having discussions about these possible Medicare and Medicaid cuts. It's almost…You can't avoid talking about it. It's on everyone's everyone's lips," said Lisa Davis, the director of the Pennsylvania Office of Rural Health.
The office, which is located on Penn State's University Park campus, works with local, state and federal partners to improve health care in rural areas. In meetings with those partners, Davis said the general consensus is, "worry, wait and see."
Davis said hospitals in rural areas see more patients on Medicare and Medicaid. She said those programs reimburse at lower rates than commercial insurance companies, which is part of the reason many rural hospitals are already struggling.
“Small rural hospitals will become even more vulnerable because they may see changes in their reimbursements," Davis said. "We also will very likely see higher numbers of uninsured persons.”
Bucktail Medical Center in Renovo closed its long-term care facility last May and reorganized its administration, blaming low Medicaid and Medicare reimbursement rates, a small population to treat, and a lack of specialty care that would bring in more revenue.
If there are cuts or changes to Medicare and Medicaid reimbursements, Davis said it will affect every hospital in the country.
