Medicaid changes could pressure hospitals, report finds

Published on October 25, 2026

A 2026 report from The Institute’s Health and Health Care Task Force finds that changes in federal law could put new pressure on hospitals and health care providers, Yahoo reports. Federal Medicaid spending is anticipated to decline by $911 billion over the next decade, and an estimated 310,000 Pennsylvania residents may lose coverage as a result of the changes in the law. ¹

The report states that approximately 27% of Luzerne County residents are enrolled in Medicaid, as are 24% of Lackawanna County residents and 21% of Wayne County residents. Fewer insured patients could translate into more uncompensated care, which puts additional strain on medical providers and hospitals. The report notes that since Medicaid expansion began in 2015, hospital uncompensated care costs have fallen 27.7%, even as overall health care costs have risen.

Jill Avery-Stoss, President and CEO of The Institute, said new federal restrictions will limit some of the tools states have traditionally used to finance Medicaid. States facing slower revenue growth and increased spending needs may respond by adjusting reimbursement rates, eligibility, or benefits. The report states that the federal Rural Health Transformation Program is intended to support efforts such as recruiting and retaining health care workers, but that this funding is temporary and is not expected to fully offset the longer-term effects of changes in Medicaid funding.