The Big Story 

Senate GOP leaders are looking to cut a deal with members of their conference who have balked at the impact of Medicaid cuts on rural hospitals. 

Greg Nash, The Hill

Senate Majority Leader John Thune (R-S.D.) and Finance Committee Chair Mike Crapo (R-Idaho) are in talks with Sens. Susan Collins (R-Maine) and Josh Hawley (R-Mo.), among others, to create some kind of direct financial assistance for rural hospitals that would be in danger of closing if the Senate bill passes in its current form. 

The senators have expressed concerns that scaling back the provider tax would negatively impact rural hospitals. Details are still being worked out on how much money would be put into the fund and how the money would be distributed.  

But leadership wants to have the bill on President Trump’s desk by July 4, so the ambitious timeline means they need to win over the holdouts quickly.  

States impose taxes on providers to boost their federal Medicaid contributions, which they then direct back to hospitals in the form of higher reimbursements.  

Critics argue it’s a scheme for states to get more federal funding without spending any of their own money. But provider taxes have become ingrained into states’ Medicaid financing systems. States and provider groups say the taxes provide a steady source of financing for hospitals that operate on thin margins and would otherwise face closure.  

The Senate legislation would effectively cap provider taxes at 3.5 percent by 2031, down from the current 6 percent, but only for the states that expanded Medicaid under the Affordable Care Act. The cap would be phased in by lowering it 0.5 percent annually, starting in 2027.

Read more here.

Welcome to The Hill’s Health Care newsletter, we’re Nathaniel Weixel, Joseph Choi and Alejandra O’Connell-Domenech — every week we follow the latest moves on how Washington impacts your health.

Did someone forward you this newsletter? Subscribe here.

Essential Reads 

How policy will be impacting the health care sector this week and beyond:

NIH launching long-term health studies of East Palestine train crash

Alcohol linked to increased risk of pancreatic cancer: Study

Carville: RFK Jr. ‘is going to kill more people than any Cabinet secretary, maybe in history’

Around the Nation 

Local and state headlines on health care:

What We’re Reading 

Health news we’ve flagged from other outlets:

What Others are Reading 

Most read stories on The Hill right now:

Senate GOP leader faces pushback after members blindsided by Trump bill

Senate Majority Leader John Thune (R-S.D.) is facing strong pushback from members of the GOP conference over the Finance Committee’s piece of … Read more

LA Dodgers deny ICE access to stadium grounds

The Los Angeles Dodgers said Thursday they denied Immigration and Customs Enforcement (ICE) agents entry to their stadium grounds. “This morning, … Read more

What People Think 

Opinions related to health submitted to The Hill: