Threats to Medicaid Funding: Changes to Provider Taxes & State-Directed Payments
Medicaid is a critical source of health insurance and coverage for more than 77 million Americans, including people with cancer who rely on the program for prevention, timely detection, treatment, and survival. The 2025 budget reconciliation bill makes significant changes to key Medicaid funding mechanisms like state-directed payments and provider taxes, which are expected to reduce states’ ability to finance their Medicaid programs. This factsheet outlines what these changes mean, the projected financial impact on states, and consequences for patient access to cancer care.