Trump health-care czar touts $510 billion Medicaid cut, warns hospitals of financial strain

At a Healthcare Financial Management Association conference in National Harbor, Maryland, the Trump administration’s newly appointed health-care affordability czar addressed hospital finance leaders.

Casey Mulligan, the Department of Health and Human Services’ chief economist and chief regulatory officer, used the platform to promote the One Big Beautiful Bill Act, which proposes cuts to state-directed Medicaid payments projected to save about $510 billion over the next decade.

Hospital executives warned that the reductions, which would lower the payments they receive from Medicaid and affect the federal match, could strain their finances and make it harder to maintain services.

The administration argues the cuts will improve affordability and reduce federal spending, while the health-care industry anticipates challenges in adapting to the reduced revenue streams.