How Medicaid Cuts Threaten Rural Hospitals in Iowa, Illinois

There's been a lot of talks about Medicaid cuts in lieu of the passage of President Donald Trump's "One Big Beautiful Bill Act," which was signed into law on the Fourth of July 2025. In the realm of health insurance, Iowa healthcare experts have revealed that they expect the bill to impact everyone, not just those who rely on government-subsidized insurance.

KWQC published a piece where they consulted several different individuals, who offered context on the impact the newly passed legislature will have on health insurance. Sweeping cuts to Medicaid could (and already have led) lead to many hospitals, specifically ones in rural areas, raising prices to cover the loss in the cuts, or outright closings as a result.

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Emergency Rooms, Maternity Units Could Be Sacrificed:

Some hospitals will be forced to make extremely difficult decisions, such as closing down a maternity unit, or limiting emergency room access. Those are the kinds of move that would impact everyone, regardless of insurance status.

The Senate was successful in amending Trump's bill to send $50 billion for rural hospitals, but that lump sum won't be enough to cover the losses. Medicaid cuts in rural areas will amount to roughly $155 billion, per KWQC:

Hospitals still are the largest economic engine in those communities. So even if you’re not on Medicaid, those communities, if you live there, depend on that hospital to be there to employ folks. And to take care of everybody who comes through their doors. - Chris Mitchell, president of the Iowa Hospital Association, per KWQC

Rural Hospitals in Iowa, Illinois Already at Risk of Closing:

Rural hospitals are already struggling. 20 hospitals in Iowa were at an "immediate risk" of closing prior to the passage of the "Big Beautiful Bill." 17 hospitals are under the same designation, per the Center for Healthcare Quality and Payment Reform.

Roughly one in four Iowans rely on Medicaid, per KWQC. For more information on how Medicaid cuts threaten Iowa and Illinois' website, visit KWQC's website.