Landsman, Ruiz, Kelly, and Dingell Introduce Legislation to Repeal One Big Beautiful Bill’s Hospital Cuts

Cincinnati, OH – This week, Representatives Greg Landsman (D-OH-01), Raul Ruiz (D-CA-25), Robin Kelly (D-IL-02), and Debbie Dingell (D-MI-06), introduced commonsense legislation to repeal a provision of the One Big Beautiful Bill that cuts hospital funding.

Representatives Landsman, Ruiz, Kelly, and Dingell – members of the House Energy and Commerce Committee – introduced H.R.4807 – the Protect Our Hospitals Act – legislation to repeal a section of the One Big Beautiful Bill Act that drastically cuts funding for hospitals.

One of the most damaging provisions of the One Big Beautiful Bill is a change to Medicaid Provider Taxes, which are fees that 49 states levy on hospitals and other healthcare providers. These fees allow states to fund their Medicaid programs, and secure additional matching Medicaid funding from the federal government. Hospitals support these Medicaid Provider taxes because they allow states to bring in more federal Medicaid funding, which is used to help hospitals cover the cost of the care they provide.

Previously, federal law allowed states to levy a fee on hospitals of up to 6 percent of patient revenue. The One Big Beautiful Bill, however, lowers that fee to a maximum 3.5 percent by 2032. As a result, states will struggle to generate the revenue they need to fund their Medicaid programs – forcing themto reduce payments to hospitals, reduce Medicaid coverage, or raise state taxes.

The Protect Our Hospitals Act – endorsed by the national Children’s Hospital Association – repeals the Medicaid Provider Tax provision of the One Big Beautiful Bill entirely, allowing states to continue generating the revenue they need for their Medicaid programs.

Congressman Landsman:

“Millions of Americans are going to lose their healthcare due to Trump’s budget bill. Hospitals will be particularly hard hit by the One Big Beautiful Bill Act, which cuts their funding in order to pay for tax cuts for the super wealthy. Our commonsense bill is the first step to protecting our hospitals, protecting Medicaid, and protecting millions of Americans’ healthcare.”

Congressman Ruiz:

“The Big Ugly Law is a direct assault on our hospitals, our health care system, and the patients who depend on them. By slashing the Medicaid Provider Taxes, the Big Ugly Law will financially devastate health care systems and jeopardize access to care for millions of Americans. That’s why we are introducing the Protect Our Hospitals Act, to repeal the Medicaid Provider Taxes section and restore states’ ability to fund Medicaid, protect access to care, and keep our hospitals open for the families who rely on them. I will keep fighting to ensure every patient can get the care they need.”

Congresswoman Kelly:

“President Trump and his Congressional Republicans sacrificed nearly half a million Illinoisans’ healthcare and risked the closure of nine rural hospitals in Illinois to give a $4.5 trillion tax break to the wealthy few. My Democratic colleagues and I, though, are not giving up, and I’m working to reverse the damage to our public health. Our bill repeals one of the ugliest provisions of the Big, Ugly Law to protect people’s healthcare and communities’ hospitals.”

Congresswoman Dingell:

“By cutting the provider tax rate, Republicans have cut the ways states can work with the federal government to access critical Medicaid funding, creating a financial gap that states will likely be unable to fill. As a result, states will be forced to reduce coverage and slash services that patients depend upon. I’m proud to introduce the Protect Our Hospitals Act to safeguard this essential funding.”

The full text of the Protect Our Hospitals Act can be found here.

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