GOP bill would increase hospital uncompensated care costs by $42B in 2034: AEH

By Andrew Cass / June 5, 2025

The proposed Medicaid policy changes included the House-passed “One Big Beautiful Bill” are projected to increase hospitals’ uncompensated care costs by at least $42.4 billion in 2034, according to America’s Essential Hospitals. 

In a June 5 policy brief, AEH analyzed Congressional Budget Office data, including a June 4 report stating that the bill would result in 10.9 million more Americans becoming uninsured by 2034.

Four things to know: 

1. In 2034, lower Medicaid payments will add $21.7 billion in shortfalls — the difference between a hospital’s cost of care for Medicaid patients and the payment it receives for those services. 

2. The increase of 10.9 million uninsured Americans will add $20.6 billion in uncompensated care costs by 2034. 

3. AEH said the effects of the cuts will “likely compound over time because these proposed Medicaid payment freezes do not appear to fully keep up with inflation.”

4. Essential hospitals comprise 5% of hospitals nationally but would bear an estimated 25% of the added unpaid costs of care — amounting to an additional $10.7 billion in cuts to essential hospitals in 2034.