Medicaid work requirements could cut hospital operating margins by 13%

Nearly 3,000 U.S. general acute care hospitals could see an 11.7% to 13.3% cut in their operating margins in 2027 related to upcoming Medicaid work requirements, according to a Commonwealth Fund analysis published Sept. 18.  Those percentages equate to $10.9 billion to $12.4 billion in projected revenue losses for hospitals. 

In July, President Donald Trump signed the One Big Beautiful Bill Act. Under the law, states will need to establish Medicaid work requirements for certain individuals as soon as 2027. To be eligible for Medicaid, select individuals ages 19-64 will need to work at least 80 hours, complete community service, participate in a work program, or enroll in an educational program for a set number of hours each month.  Exceptions include caregivers, veterans with disabilities