HAP Statement on Senate Finance Committee Reconciliation Text

Harrisburg, PA (June 17, 2025)—HAP President and CEO Nicole Stallings released the following statement about the U.S. Senate Finance Committee’s budget reconciliation legislation:

“The Senate Finance Committee reconciliation text calls for drastic and abrupt cuts to Medicaid payments that put Pennsylvanians’ access to care in jeopardy, especially in rural communities. Already struggling hospitals cannot absorb a sudden cut of this magnitude, and some will have no choice but to reduce services or close.

“Medicaid is not just a lifeline for 3 million Pennsylvanians who rely on it for coverage but is also a critical funding source that hospitals depend on to care for everyone in our communities. HAP and Pennsylvania hospitals were already concerned about provisions in the House-passed reconciliation legislation that would reduce health care coverage, make Pennsylvanians less healthy, and undermine hospital stability by increasing uncompensated care. The Senate proposal goes even further by weakening legitimate, vetted financing structures that are necessary to maintain access to care amid chronic underpayment by Medicaid.

“More than half of the commonwealth’s acute care hospitals are operating in the red, largely because payments already do not reflect the actual cost of providing care. Even with provider-tax-funded payments, Medicaid reimburses Pennsylvania hospitals, on average, only 82 cents on the dollar—74 cents in rural communities. Hospitals, especially those serving rural communities, cannot absorb a cut.

“HAP urges Congress to oppose cuts that put Pennsylvanians’ care at risk.”