STAT+: Trump’s health care affordability czar touts Medicaid cuts to hospital leaders

STAT PlusPolitics Trump’s health care affordability czar touts Medicaid cuts to hospital leaders Hospitals say they’ll struggle to handle GOP law’s $510 billion cut to state-directed payments Manage alerts for this article Email this article Share this article By Tara BannowJune 9, 2026 Hospitals and Insurance Reporter Tara Bannow[email protected]Tara covers the business of health care. Her stories focus on hospitals, doctors, and how their business practices affect patients — especially when private equity gets involved. She also writes about health insurance and ideas for improving our broken health system. You can reach Tara on Signal at tarabannow.70. NATIONAL HARBOR, Md. — Hospital finance leaders rolled out the red carpet for the Trump administration’s new health care affordability czar at an industry conference on Monday. He promptly took the main stage to champion Medicaid cuts that threaten their bottom lines. Casey Mulligan, appointed by Robert F. Kennedy Jr. as the Department of Health and Human Services’ chief economist and chief regulatory officer in April, spent most of his speech at the Healthcare Financial Management Association’s conference praising the One Big Beautiful Bill Act’s cuts to state-directed payments, which the government projects could save $510 billion over 10 years. Advertisement State-directed payments work by first taxing Medicaid providers like hospitals and nursing homes, using that money to obtain federal Medicaid match dollars, and then redistributing the money to providers, often giving them more than they paid in taxes. Since 2024, some providers have gotten reimbursed at much higher commercial rates. The One Big Beautiful Bill Act will gradually trim those payments beginning in 2028 until they’re close to or on par with Medicare rates. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus daily intelligence on Capitol Hill and the life sciences industry — by subscribing to STAT+. Already have an account? Log in Monthly $39 Totals $468 per year $39/month Get Started Totals $468 per year Starter $30 for 3 months, then $399/year $30 for 3 months Get Started Then $399/year Annual $399 Save 15% $399/year Get Started Save 15% 11+ Users Custom Savings start at 25%! Request A Quote Request A Quote Savings start at 25%! 2-10 Users $300 Annually per user $300/year Get Started $300 Annually per user View All Plans To read the rest of this story subscribe to STAT+. Subscribe Log In health care costs, HHS, hospitals, Medicaid, Policy, STAT+ Submit a correction requestReprints Tara Bannow Hospitals and Insurance Reporter Tara covers the business of health care. Her stories focus on hospitals, doctors, and how their business practices affect patients — especially when private equity gets involved. She also writes about health insurance and ideas for improving our broken health system. You can reach Tara on Signal at tarabannow.70. Newsletter Unpacking the business — and secretive inner workings — of the U.S. health care industry Recommended Health Care Inc. Newsletter June 8, 2026 STAT Plus: UnitedHealthcare’s lactation billing feud, and fake strokes The Readout June 8, 2026 STAT Plus: Novo underwhelmed by drug it once fought Pfizer for Advertisement The Readout June 5, 2026 STAT Plus: Will Makary’s FDA voucher program survive? D.C. Diagnosis June 4, 2026 STAT Plus: RFK Jr.’s second year: Vacancies, not vaccines The Readout June 4, 2026 STAT Plus: AI titans push Congress for DNA safeguards Subscriber Picks