Skip to main content
Category

News

NEW AD: Rep. Slotkin Efforts to Lower the Cost of Prescription Drugs Highlighted in Patient Testimonial

Protect Our Care Builds on Seven-Figure Campaign With New Ads in 8 Key Districts Around the Country

Watch the Ad Here

Michigan — Today, Protect Our Care is releasing a new ad highlighting U.S. Representative Elissa Slotkin’s (MI-08) efforts to bring down health care and prescription drug costs for Michiganders. The ad features a testimonial from Mindy, a Type I diabetic who struggles to afford life saving medications. In the ad, Mindy tells her personal story and thanks lawmakers like Rep. Slotkin for standing up to big pharmaceutical companies and fighting to lower prescription drug prices and cap insulin costs.

Polling shows that health care consistently ranks as a top concern for Americans, particularly when they are concerned about higher prices. People across political parties overwhelmingly support reforms to bring down health care costs. Protect Our Care’s new ad will begin running on Tuesday, May 17 on broadcast and cable television, streaming services, YouTube and other digital platforms.

The new ad is part of a multi-million dollar campaign announced last month to support health care champions fighting to lower health care costs. The overall campaign is focused in the following districts: Reps. Cindy Axne (IA-03), Angie Craig (MN-02), Sharice Davids (KS-03), Andy Kim (NJ-03), Susie Lee (NV-03), Elissa Slotkin (MI-08), Abigail Spanberger (VA-07), and Susan Wild (PA-07). Last month, Protect Our Care released ads highlighting Rep. Slotkin’s work to ban surprise medical bills and lower insulin prices. Watch the first ads in the series here.

“Rep. Slotkin is working tirelessly to lower the costs of health insurance and prescription drugs for Michiganders,” said Protect Our Care Chair Leslie Dach. “Michiganders are worried about rising costs and Rep. Slotkin is leading the fight to give them more breathing room as they manage their family budget. Thanks to Rep. Slotkin’s efforts, we are closer than ever to ensuring Michiganders can afford the health care they need.”

Ad Script for MI-08:

The drug companies just keep raising prices.

I pay three hundred and fifty dollars for my diabetes medication.

I can’t keep up with that…

But finally, Congress is doing something about it.

Congresswoman Elissa Slotkin.

She’s taking on big drug companies to cap the cost of Insulin, and to allow Medicare to negotiate lower drug prices.

Fighting to bring down drug costs  – that means everything to me.
Congresswoman  Elissa Slotkin.

Lowering costs, for us.

NEW ADS: Protect Our Care Builds on Seven-Figure Campaign With Two Patient Testimonials On Members Working to Lower Health Care Costs

New Ads Will Launch in 8 Key Districts Around the Country and Include Broadcast, Cable and Digital Platforms

Watch the New Ads Here

Washington, DCProtect Our Care is starting new ads as part of its now $6 million campaign about members of Congress who’ve been working to bring down health care costs for American families. The first ad tells the story of Jessica, a single mom with multiple chronic health conditions, who saved $200 per month because these members delivered lower health insurance premiums in the American Rescue Plan. The second ad features Mindy, a Type I diabetic, highlighting members fighting to give Medicare the power to negotiate lower drug prices. 

The new ads will begin running on Tuesday, May 17 in the following districts: Reps. Cindy Axne (IA-03), Angie Craig (MN-02), Sharice Davids (KS-03), Andy Kim (NJ-03), Susie Lee (NV-03), Elissa Slotkin (MI-08), Abigail Spanberger (VA-07), and Susan Wild (PA-07). Last month, Protect Our Care launched the seven-figure dollar campaign with ads highlighting eight key members of Congress and their work to ban surprise medical bills and lower insulin prices. Watch the first ads in the series here.

“These lawmakers have led the fight for lower health care costs so families can pay their bills, balance their budgets, and breathe a little easier at night. They have cut health insurance premiums and are standing up to big drug companies to reduce the cost of prescription drugs,,” said Protect Our Care Chair Leslie Dach. “Americans from all walks of life support reforms to lower premium costs, give Medicare the power to negotiate drug prices, and reduce the cost of care. These members are delivering real results, and they won’t quit until health care is affordable for every American.”

Sample Ad Scripts:

Jessica – Bringing Down Health Insurance Premiums (IA-03)

Jessica: As someone who faces a number of chronic health conditions, I was paying as much each month for my health insurance as I was my mortgage. So when Congress passed the bill that lowered my premiums – that made a huge difference.

Narrator: Congresswoman Cindy Axne got it done. Passing the bill that lowered premiums for millions of families. 

Jessica: I’m saving 200 hundred dollars a month – that’s month for groceries, for bills …that’s a big deal for us.

Narrator: Congresswoman Slotkin. Lowering costs, for us.

Mindy – Bringing Down Drug Prices (MI-08)

Mindy: The drug companies just keep raising prices. I pay three hundred and fifty dollars for my diabetes medication. I can’t keep up with that. Finally, Congress is doing something about it.

 Narrator: Congresswoman Elissa Slotkin. She’s taking on big drug companies to cap the cost of Insulin, and to allow Medicare to negotiate lower drug prices.

Mindy: Fighting to bring down drug costs  – that means everything to me and my family.

Narrator: Congresswoman Elissa Slotkin. Lowering costs, for us.

Links to each of the ads can be found below:
Reps. Cindy Axne (IA-03)
Angie Craig (MN-02)
Sharice Davids (KS-03)
Andy Kim (NJ-03)
Susie Lee (NV-03)
Elissa Slotkin (MI-08)
Abigail Spanberger (VA-07)
Susan Wild (PA-07)

President Biden Is Right: Lowering Health Care Costs Fights Inflation and Delivers Relief to Working Families

And the Republican Plan? A Big Fat “No” on Lowering Health Care Costs and a “Yes” on Returning to an Agenda of Repealing Health Care

Today, President Biden will deliver a speech on Democrats’ plans to lower costs amid rising inflation. Between fighting to lower health premiums and prescription drug prices and expanding affordable coverage to working families, Democrats are working tirelessly to lower everyday costs for the American people. The health care provisions in President Biden’s economic plan are among the most efficient and direct ways to put more money in people’s pockets, saving many families thousands of dollars on their annual health care needs. These reforms will give people more breathing room to pay for other necessities like food, child care, and rent, and they will help ensure families are able to access the health care they need. Meanwhile, Republicans have offered zero plans to curb inflation and oppose these reforms that would lower health care costs for millions of Americans. Even worse, Republicans have doubled down on their commitment to repealing lower health care premiums and other protections under the Affordable Care Act. Voters across parties agree: it’s time for Congress to act to lower health care costs now. 

How President Biden’s Agenda Lowers the Cost of Living

  1. Checks Big Pharma’s Greed And Cuts Drug Costs. Over the past 20 years, price increases for brand-name drugs in Medicare Part D have risen at more than twice the rate of inflation. President Biden’s plan stops this predatory practice from Big Pharma by prohibiting drug companies from raising prices faster than the rate of inflation. This cap is essential to stop arbitrary price increases on life saving medications. Additionally, Medicare Part D out-of-pocket costs for prescription drugs would be capped at $2,000 per year and insulin co-pays for all Americans with insurance would be capped at $35 each month, dramatically lowering the cost of living for millions of Americans.
  2. Cuts Monthly Premiums For Millions Of Americans. In 2021, 14.5 million people signed up for health coverage through an ACA marketplace. This is the highest number of Americans to ever enroll and it is thanks to the premium savings created in President Biden’s American Rescue Plan. Families are now saving an average of $2,400 a year on their health insurance premiums, with a guaranteed option to purchase health care for less than 8.5 percent of their income. Previously, families earning just above 400 percent of the federal poverty level spent an average of 15 percent of their incomes on health insurance. President Biden’s plan also has eliminated premiums for Americans earning up to 150 percent of the federal poverty level who buy their coverage on the marketplace. President Biden’s plan is a critical tool in lowering the cost of living, which is exactly why 17 recipients of the Nobel Prize in Economic Sciences authored an open letter in support of President Biden’s plan and urged its passage. 
    • Reduces Racial Disparities In Health Coverage. The premium savings provided in the American Rescue Plan have made more than 65 percent of uninsured Black adults eligible for zero dollar premium plans and 75 percent eligible for plans less than $50 a month. For uninsured Hispanic and Latino adults, now more than 68 percent are eligible for zero dollar premium plans and nearly 80 percent can access plans for less than $50 a month. Health coverage access is imperative to reducing the racial wealth gap and racial disparities in health coverage.
    • Cuts Costs For Rural America. Thanks to the ARP, roughly 65 percent of rural Americans can access zero dollar premium health coverage and more than 76 percent are able to find a plan for less than $50 a month, narrowing the coverage differences between rural and urban America, giving rural Americans some much needed financial breathing room.
  3. Closes The Medicaid Gap And Cuts Medical Debt. President Biden’s plan would allow more than two million Americans currently trapped in the Medicaid coverage gap to access zero dollar premium health coverage. Of those currently in the coverage gap, 62 percent are in the labor force, 30 percent are parents with children at home, more than 25 percent are essential workers, and 15 percent of adults have a disability. Medicaid expansion under the ACA caused a significant reduction in poverty and reduced income inequality across the board by more than 5 percent. In states that have expanded Medicaid, the chance of accruing medical debt is 20 percent lower than non-expansion states and, a 2018 analysis found that Medicaid expansion led to a nearly $6 billion decline in unpaid medical bills and to higher credit scores.

TODAY: Rep. Kaptur, Ohio Health Care Experts To Highlight Importance of Lowering Costs and Expanding Coverage, Discuss New Report

***MEDIA ADVISORY FOR TUESDAY, MAY 10 AT 1:00 PM ET***

Speakers To Discuss Affordable Insulin Now Act and New Report Showing Impact of Health Coverage Affordability in Ohio if Congress Fails To Make the Premium Tax Credits Included in the American Rescue Plan Permanent  

Toledo, OH — Today, May 10, 2022 at 1:00 PM ET, Congresswoman Marcy Kaptur (D-OH-09) and Ohio health care leaders will join Protect Our Care Ohio to discuss the urgent importance of and opportunities to lower health care costs for Ohioans. They will highlight the importance of lowering insulin costs by passing the Affordable Insulin Now Act, which is co-sponsored by Rep. Kaptur. Additionally, they will discuss a new report that shows the premium tax credits included in the American Rescue Plan have made health coverage more affordable for Ohioans. The report also lays out the dire consequences if Congress fails to make the credits permanent – including that more than three million people, including 63,000 Ohioans, could lose their coverage.

VIRTUAL EVENT
WHO:
Congresswoman Marcy Kaptur (D-OH-09)
Samuel Camacho, Certified Navigator, Affordable Care Act, UHCAN Ohio
John Kennedy, a type-1 diabetic and advocate for Ohio Insulin4All

WHAT: Virtual Press Conference 

WHEN: Tuesday, May 10, 2022 at 1:00 PM ET

WHERERegister For the Event Here

More Polling Reveals Voters View Health Care Provisions as Top Priorities in Democrats’ Economic Plan

New polling from Navigator confirms broad support for Democrats’ economic plan to lower costs for the American people. Overall, 67 percent of voters support the package, including 88 percent of Democrats, 66 percent of independents, and 42 percent of Republicans. According to Navigator, voters report that out of all of the policies in the plan, voters’ top priorities are capping insulin costs, giving Medicare the power to negotiate drug prices, and extending hearing benefits to seniors. Roughly six in 10 voters reported concern that Republican control meant costs would keep going up, particularly as they are blocking lower drug prices and have voted against lower health care premiums. 

These results mirror new polling from Data for Progress and Invest in America showing voters strongly support the Democrats’ economic plan, ranking its health care provisions as the top five priorities for Congress. 

More from Navigator here.

Health care remains priority #1:

Voters strongly support Democrats’ economic plan: 

Voters agree Republicans are working to raise costs by blocking Medicare negotiation and rejecting lower health care premiums:

 

Voters Rank Health Care Provisions as Top Priority in New Nationwide Poll

New polling from Data for Progress and Invest in America released yesterday shows voters strongly support Democrats’ investment package to lower costs for the American people. Across parties, 75 percent of voters support the package, compared to just 17 percent who oppose. Among all of the provisions being considered by Congress, health care ranks voters’ top five priorities. These results add to a string of recent polls confirming that voters want Congress to deliver lower health care costs, specifically by giving Medicare the power to negotiate lower drug prices, capping insulin costs, lowering premiums for families purchasing coverage on their own, and improving care for seniors and people with disabilities. 

More from Data for Progress here.

Protect Our Care Statement on Draft Supreme Court Decision to Overturn Roe v. Wade

Washington DC — Last night, after obtaining a leaked draft opinion, Politico reported that the Supreme Court appears to have enough votes to overturn the landmark Roe v. Wade decision. While abortion remains legal today, the decision threatens to open the floodgates for Republican states to ban abortion. In response, Protect Our Care Executive Director Brad Woodhouse issued the following statement: 

“This is a dark day in American history. After lying to the U.S. Senate and to the American people, far-right justices on the highest court in the land are poised to upend established law, disregard the Constitution, and attack fundamental human rights. If the leaked draft is accurate, we will face a health care crisis and millions of women will be stripped from their right to safe abortion access. The court is owned by the party of Trump, and we’re only beginning to see the true consequences. Every Republican who voted for these justices owns this decision and the American people will hold them accountable for their negligence. We won’t stop fighting until health care, including reproductive freedom, is a right for every American.

MEMO: Congress Must Act Quickly to Stop Health Insurance Premium Increases 

MEMORANDUM
TO: Interested Parties
FR: Leslie Dach and Brad Woodhouse, Protect Our Care
DT: May 2, 2022
MEMO: Congress Must Act Quickly to Stop Health Insurance Premium Increases 

If Congress fails to act, millions of families will pay thousands more for health insurance in 2023. The American Rescue Plan saved families thousands on their premiums, but the expanded tax credits that powered those savings will expire at the end of 2022 and, without Congressional action, premiums for next year’s plans will rise dramatically for those who buy insurance on their own.

In a number of states, 2023 premiums will be public starting in July, with official notices in all states sent to enrollees starting in the early fall. Open enrollment for 2023 plans begins on November 1st 2022, a week before Election Day. As people go to the polls, these premium increases will be front and center.

Background

Rising prices are keeping Americans up at night and they are depending on Congress to do something about it. Addressing health care costs is one of the most effective ways to lower the cost of living and put more money in working families’ pockets. Americans continue to pay more for their health care than anyone in the world, with the average family spending thousands of dollars per year in premiums, deductibles, and prescription drug costs.

Last year, Democrats passed the American Rescue Plan, increasing federal assistance and lowering health insurance costs for millions of Americans who buy insurance on their own. The American Rescue Plan guaranteed coverage that costs less than 8.5 percent of income, eliminated premiums for those making less than 150 percent of the federal poverty level, and expanded eligibility for premium tax credits for those making over 400 percent of the federal poverty line. Overall, 9 million Americans benefited from these lower costs. 

Because of the American Rescue Plan, millions were able to enroll in a quality plan for $10 or less per month, and families saved an average of $2,400 a year on their insurance premiums. As a result a record number of Americans —14.5 million — are now covered by an ACA Marketplace plan. For so many, this access to care means the peace of mind knowing that a medical emergency will not result in bankruptcy. 

Polling Shows Americans Strongly Support Premium Savings

Poll after poll shows that voters overwhelmingly support making the American Rescue Plan’s premiums permanent. Democrats ran and won on health care in 2018 and 2020, and voters are depending on them to deliver. A closer look at recent polling: 

  • KFF Poll Finds Americans Overwhelmingly Support Biden’s Plan To Lower Health Care Costs. [KFF, 3/31/22]
    • ACA Premium Savings. 63 percent prioritize making permanent the financial help for people buying marketplace health coverage that was included in COVID-19 relief law. [KFF, 3/31/22]
  • Pew Survey Finds Health Care Ranked Third Most Important Issue For Americans. [Pew Research, 3/24/22]
    • Health Care Remains Top Issue. 60 percent of voters ranked health care as a top issue for the fall election, with 74 percent of Democrats saying it is very important to their vote and 44 percent of Republicans voters saying the same. [Pew Research, 3/24/22]
  • Navigator Finds Lowering Health Care Premiums For People Purchasing Coverage Remains Priority. Four out of the five top priorities are health provisions included in President Biden’s agenda. [Navigator, 1/28/22]
    • Lowering Premiums. Overall, 78 percent believed lowering premiums for people purchasing health coverage on their own was a good reason to pass Biden’s agenda, including 91 percent of Democrats, 77 percent of independents, and 64 percent of Republicans. [Navigator, 1/28/22]

Timeline

Here is the timeline for the public release of 2023 health insurance premiums:

  • Currently Underway: Insurance providers are currently negotiating premium rates for 2023. If Congress does not act to extend the ARP’s premiums savings, insurers will be forced to assume the tax credits will expire at the end of the year, which will result in sizable premium price increases
  • July: Most premium rate changes will be finalized and public beginning at the start of July. 
  • September & October: Insurers planning to offer health plans on the ACA marketplaces are required to submit their premiums for 2023 to state or federal regulators. Enrollees will be notified of plan price changes officially in September and October, with rates required to be finalized by October 15.
  • November 1: The annual open enrollment period for ACA marketplaces begins November 1.
  • November 8: Election Day is November 8, one week after open enrollment for 2023 is set to begin

Bottom line

While President Biden and Democrats are working tirelessly to make health care more affordable, Republican lawmakers oppose lowering premium costs for families. Every Republican in Congress voted against the American Rescue Plan, and the GOP has offered zero solutions to lower the price of health care. 

If Congress fails to extend the American Rescue Plan’s tax credits, news of premiums skyrocketing will be front and center just as Americans begin signing up for coverage in November. Only Congress can prevent widespread premium hikes. Every member must get on board to ensure hardworking families can continue to access the health care they need. 

Additional Resources 

Fact Sheet: At Risk: Health Care Savings Millions Depend On

The American Rescue Plan boldly built on the strong foundation of the ACA by lowering premiums and expanding access to coverage. In 2021, 14.5 million people signed up for health coverage through the ACA Marketplace. This is the highest number of Americans to ever enroll on the Marketplaces and it is thanks to President Biden’s American Rescue Plan. The ARP made health insurance more affordable and accessible than ever, helping families, reducing racial disparities, and giving Americans a little breathing room. 

A recent report from the Robert Wood Johnson Foundation and Urban Institute found more than three million people would lose their coverage if Congress fails to make the American Rescue Plan’s enhanced premium tax credits permanent. The study also shows that millions of people currently eligible for the enhanced premium tax credits could pay thousands of dollars more a year for their health insurance without action. Congress must act to make the savings provided in the American Rescue Plan permanent and protect the progress Americans have gained in the fight for affordable health care.

Read the entire fact sheet here.

State-by-State Fact Sheets

Republicans Reject Common Sense Fix to Drive Down Health Care Costs

Washington DC — Yesterday, Representative Kevin Brady (R-TX) and Senator Mike Crapo (R-ID) sent a letter in opposition of the Biden administration’s efforts to fix the “family glitch” and expand affordable health coverage to millions of working families. In response, Protect Our Care Chair Leslie Dach issued the following statement: 

“Republicans’ opposition to fixing family glitch and other common sense, popular policies shows they don’t care about helping American families. While offering zero solutions to lower people’s cost of living, Republican lawmakers are simply restating their opposition to the ACA and its protections for millions of Americans. The truth is every Republican voted against the American Rescue Plan, which delivered lower premiums for millions, and they continue to block Medicare negotiation, insulin cost caps, and expanded access to affordable coverage. If the GOP gets their way, it means you pay more and you get less — greater premiums, higher prescription drug prices, and worse care at the doctor’s office.”

Medicaid Expansion Reduces Health Disparities For Rural Americans

Throughout Medicaid Awareness Month, Protect Our Care has released fact sheets and hosted nationwide events with elected officials, storytellers, and health care advocates to highlight Medicaid’s critical role in America, discuss what needs to be done to expand and strengthen the program, and raise awareness of the consequences of Republican threats. This week, Protect Our Care is examining the role Medicaid plays in reducing disparities and improving health care outcomes for some of our nation’s most vulnerable populations, including communities of color, people living with disabilities, seniors and older adults, women, children, and rural Americans.

Medicaid expansion has been instrumental in providing health care to America’s rural populations. Thanks to the Affordable Care Act and President Biden’s transformative American Rescue Plan, nearly 14 million Americans living in rural communities have received increased access to care and health services. Medicaid expansion has resulted in healthier people, communities and economies. 

A Closer Look At Medicaid Expansion For Rural Americans

The Affordable Care Act’s (ACA) Medicaid expansion has been a critical part of our response to the coronavirus, but Republicans in 12 states have not yet implemented the program, blocking millions from coverage and access to essential health care. Holdout states are located in the southern and midwest regions with significant rural populations with  60 million Americans residing in these areas.

By signing the American Rescue Plan into law, President Biden created historic legislation that includes the most significant health care expansion in a decade. The American Rescue Plan provided additional financial incentives for the 12 states that had not yet implemented Medicaid expansion. Since the signage of the ARP, two previous holdout states, Missouri and Oklahoma, have adopted Medicaid, expanding coverage to nearly 500,000 Americans. These measures will have profound impacts on children and their families for years to come. 

By The Numbers

  • Millions Of Rural Americans Depend On Medicaid. Nearly 14 million Medicaid enrollees reside in rural areas, with an estimated 1.7 million gaining coverage through ACA expansion in 2015.
  • Rural States Need Medicaid. There are 7.8 million uninsured Americans living in rural areas. Non-expansion states are disproportionately rural with over 4 million Americans eligible for Affordable Care Act premium tax credits.
  • Rural Hospitals Rely On Medicaid. Since 2010, 138 rural hospitals have closed, including 20 closures in 2020 alone. One in four rural hospitals face closure without more federal funding in 2022. Rural hospitals in Medicaid expansion states are 62 percent less likely to close.
  • Medicaid Strengthens Health In Rural America. Overall, rural residents have worse health outcomes and tend to be older, poorer, and sicker than those in urban areas. 
  • Rural Hospitals Strengthen Local Economies. Hospitals employ six percent of all employees in rural counties that report having any hospital employment, and 41 percent of counties with hospital employment rely on hospitals for more than 10 percent of total county employment. 673 rural hospitals are at risk of closing, and estimated that if those hospitals shut down, 99,000 health care jobs in rural communities would be lost.

How Medicaid Expansion Helps Rural Americans

Nearly 14 million Medicaid enrollees reside in rural areas, with an estimated 1.7 million gaining coverage through ACA expansion in 2015. Health care for rural Americans is especially important due to higher prevalence of pre-existing conditions and barriers to accessing health care. The success of Medicaid expansion across the country demonstrates the need for the 12 holdout states to finally adopt expansion.

There are 7.8 million uninsured Americans living in rural areas. Non-expansion states are disproportionately rural with over 4 million Americans eligible for Affordable Care Act premium tax credits, including 2.2 million uninsured individuals stuck in the Medicaid coverage gap.

Medicaid Expansion Saves Lives. Medicaid expansion has been proven to increase access to care, improve financial security, and save lives. A study published in the Journal of Health Economics found that Medicaid expansion reduced mortality in people aged 20 to 64 by 3.6 percent. Medicaid expansion also saved the lives of 424 individuals in high rural states, Alaska and West Virginia between 2014 and 2017.

Medicaid Expansion Reduces Income Inequality And Medical Debt. Medicaid expansion under the ACA significantly reduced poverty and income inequality across the board. In states that have expanded Medicaid, the likelihood of falling into medical debt is 20 percent lower than in non-expansion states. Additionally, a 2018 National Bureau of Economic Research analysis found that Medicaid expansion led to a nearly $6 billion decline in unpaid medical bills and to higher credit scores. 

Medicaid Expansion Plays A Central Role In Fighting The Opioid Crisis. In 2014, Medicaid paid for 25 percent of all addiction treatment nationwide. Among those with opioid addiction, people covered through Medicaid are more than twice as likely as those with private insurance or no insurance to receive treatment. Medicaid expansion covers an estimated four in ten people with an opioid use disorder. Recent research finds that Medicaid expansion reduced the unmet need for substance use treatment by 18.3 percent. 

Medicaid Expansion Is A Lifeline For Rural Hospitals

In states that haven’t expanded Medicaid, rural hospitals are drowning under financial pressure. 

Low occupancy rates, high levels of uncompensated care, competition with other hospitals, and struggling local economies create a financial burden that rural hospitals face all over the country. Since 2010, 138 rural hospitals have closed, including 20 closures in 2020 alone. One in four rural hospitals face closure without more federal funding in 2022. 

Medicaid Helps Rural Hospitals Stay Open. Rural hospitals in Medicaid expansion states are 62 percent less likely to close. The two most common types of supplemental Medicaid payments are disproportionate share hospital payments, that pay hospitals for uncompensated care for Medicaid and uninsured patients, and upper limit payments, which supplement the gap between fee-for-service Medicaid base payments and the amount that Medicare covers. Some states are also testing the use of global hospital budgets to increase care and improve health outcomes in rural hospitals.

Closure Of Specialized Care And Obstetrical Services. Some hospitals opt to close specific services or facilities that cause patients in rural areas to have to travel further for specialized care. On average, when a rural hospital closes patients have to travel over 20 miles further to access inpatient or emergency care. A 2021 study found that fewer than half of all rural counties in the United States had hospital-based obstetric care. When hospitals face financial hardship, obstetric services are among the first to be cut. African American and Native American women in rural areas are particularly at risk. African American and Native American women are two to three times more likely to die from pregnancy-related causes than white women.

Medicaid Expansion Boosts State Budgets. Medicaid expansion generates enough savings that it is well worth the initial cost, eventually helping boost states budgets. Expansion allows states to access federally matched funds for some people covered by traditional Medicaid. The American Rescue Plan provides states with additional funding from the federal government. From 2022 to 2025, the 12 states that haven’t expanded Medicaid yet would gain $90 billion in federal matching funds in addition to $17.6 billion in ARP bonus payments and $6.6 billion from higher state and local tax revenue.

Rural Hospitals Are Large Employers In Their Communities. For rural areas that often have high unemployment rates, hospitals contribute significantly to local economies by employing large numbers of people with relatively high-paying jobs.

Beyond just being a source of jobs, hospitals tend to pay higher wages than other rural industries. As the House of Representatives Minority Staff report on rural hospitals highlights, “The average pay of hospital employees in rural counties is 43 percent higher than the average pay of other workers in the same counties.”  As Mark Holmes, the director of the Rural Health Research Program at the University of North Carolina, emphasizes, hospital closures in rural communities can be like losing a factory: “Losing an employer of 150 people with good jobs is like losing a manufacturing plant…Hospitals are usually the largest, or the second-largest, employer in a community. That’s something that’s easy to lose sight of because we think of this from a health standpoint. But the effects are wide-ranging when a hospital closes.”

Rural Hospitals Boost Local Economies. Besides hospitals providing higher paying jobs in the health care sector, rural hospitals also stimulate the local economies of other industries. Hospitals purchase goods or services from local private businesses which helps stabilize and reinforces the local economy. In turn, strong private sector employment allows for more tax dollars for public goods, such as education and safety services.