7 ways physicians can prepare for potential Medicaid cuts

$880 billion — that’s the amount by which President Trump hopes to cut Medicaid over the next decade, according to the proposed One Big Beautiful Bill Act. The House approved the bill on May 22, and the Senate is currently considering it. 

If enacted, the Congressional Budget Office projects that these Medicaid cuts could lead to about 7.8 million people losing coverage by 2034. Here’s a state-by-state comparison of the impact.

When combined with other changes to the Affordable Care Act (ACA) marketplaces outlined in the bill, experts say the total number of individuals affected could reach 10.9 million.

Find out what you need to know — and how to prepare.

Key provisions in the Trump Medicaid cuts bill include the following:

While the impact of the administration’s proposed Medicaid changes would be significant, there could also be a substantial effect on healthcare providers. One recent report predicts healthcare providers would lose more than $770 billion in revenue over the next decade.

Though the bill has not passed, policy analysts have outlined several possible provider impacts if the legislation becomes law:

Fortunately, physicians can take proactive steps now to mitigate the impact of potential Medicaid cuts. Consider the following:

If predictions are accurate, the Trump Medicaid cuts bill can lead to revenue decreases. One way to offset this is to control costs. For example, medical practices may want to join a group purchasing organization for lower costs on medical supplies, avoid large capital investments, and outsource some or all of their revenue cycle. 

Medical practices serving a large population of Medicaid beneficiaries may want to reconsider pursuing additional payer contracts so they aren’t as reliant on Medicaid in the future. Joining a clinically integrated network may help independent practices leverage more favorable contracts.

Communicate clearly with patients about the potential changes and how these could affect their Medicaid eligibility or covered services. Promote preventive visits and chronic care management while Medicaid coverage is still active.

Maximize collections for all payers and create a solid strategy to address bad debt and improve patient collections.

Look for ways to reduce no-shows such as using automated appointment reminders, providing self-scheduling options, or instituting no-show policies.

This may be the time to invest in RCM automation or outsource billing for Medicaid.

The goal is to maintain stability, plan for growth, and adapt to policy shifts. For example, it may be time to consider advanced tools or services that use artificial intelligence or predictive modeling to forecast revenue trends and identify risk. 

Some revenue cycle management or analytics vendors also offer tools for financial forecasting. Keeping a close eye on key performance indicators (e.g., days in accounts receivable, net collection rate, visit volumes, and denial rate) will also be critically important in the months ahead.

While the industry waits for additional guidance as the Trump Medicaid cuts bill continues to move through Congress, physicians have opportunities to take proactive steps now to prepare.

Dr. Soma Mandal, internal medicine physician, says this about the possible Medicaid cuts: "In the face of potential Medicaid cuts proposed by the Trump administration, it's crucial for healthcare providers to adopt proactive strategies to safeguard their financial stability. By controlling costs, diversifying payer mixes, and enhancing billing efficiencies, physicians can better navigate the uncertainties and continue to provide essential care to their patients. The key lies in leveraging technology and strategic planning to mitigate the impact of these significant policy shifts."

Leveraging the right technology and developing savvy financial and operational strategies can help practices navigate whatever challenges come their way.