As discussions continue around up to $3 trillion in proposed budget cuts to federal healthcare spending, industry leaders are raising awareness about the effect these reductions could have on the ACA, Medicare and Medicaid.
Proposed Medicaid changes could save $2.3 trillion, according to KFF. Eighty-six percent of savings would come from a per-capita cap, reduced ACA expansion match rates and lowering the Federal Medical Assistance Percentage floor below 50%, which would transition Medicaid to a population-based payment model.
"There's just not a way to do that without affecting our reimbursement," Greg Damron, CFO, Columbia, Mo.-based University of Missouri Health Care, said during a Becker's podcast. "If you look at the laundry list of items that are sitting with the legislative branch right now, there's a lot of items there that would affect Medicaid."
MU Health Care comprises seven hospitals, which includes a $232 million children's hospital that opened in summer 2024. The health system also has around 7,000 employees and is one of two designated safety-net providers in Missouri.
Mr. Damron said MU Health Care is monitoring potential policy changes and working to stay on top of any potential budget cuts that could occur to ensure they are prepared and maintain financial stability into the future.
"I think, as an industry, we just have a lot of soul searching we need to do about what are real solutions to some of these problems versus pushing the ball back and fourth," he said.
In the meantime, MU Health Care is working on cost-cutting strategies while improving care. The health system is leveraging its participation in the 340B program to expand access to affordable medications and improve adherence by increasing clinical pharmacist support for physicians.
Mr. Damron said MU Health Care is also focusing its care access efforts and growth, particularly in rural areas.
"[W]e don't necessarily have anything slated, as of yet, but we're in a mode of looking to grow, particularly as it relates to being able to support the needs in mid-Missouri."