The Centers for Medicare & Medicaid Services (CMS) is proposing to cut Medicare payments to hospitals by 2% in 2025. This would be the first time that Medicare payments have been cut since the program was created in 1965. The cuts are part of a larger effort by the Trump administration to reduce the federal deficit.
The proposed cuts have been met with strong opposition from hospitals and other healthcare providers. They argue that the cuts would force them to reduce services or close their doors altogether. The cuts would also disproportionately affect rural hospitals, which are already struggling to stay afloat.