Forthcoming Policy Changes to Medicaid State Directed Payments

The 2025 reconciliation law reduced federal Medicaid spending by an estimated $911 billion from 2025 through 2034, some of which stems from new restrictions on Medicaid state directed payments (SDPs) for hospital and other health care services. This issue brief describes SDPs and forthcoming policy changes stemming from the 2025 reconciliation law and the proposed…

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Federal Medicaid Spending Through State Directed Payments Nears $100 Billion Annually Across 41 States, With New Limits Set to Reduce Funding to States  

Forty states and DC currently receive $93 billion in annual federal Medicaid spending through state directed payments (SDPs) and may be at risk due to forthcoming limits on these payments, according to new KFF estimates. Annual federal spending on SDPs is highest in California (an estimated $10.6 billion)—followed by Texas ($6.3 billion), North Carolina ($5.2…

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Why One in Four Americans Is Walking Away from Healthcare

The healthcare affordability crisis in the U.S. has quietly become a trust crisis, with a growing share of Americans walking away from care altogether. Industry leaders say the fix requires something the system has never really done: starting with the patient. The post Why One in Four Americans Is Walking Away from Healthcare appeared first…

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