What OBBBA Means for Hospitals: Key Dates and What to Watch

Federal Policy Update
Article Background

What’s happening

President Trump’s One Big Beautiful Bill Act (OBBBA) will make significant changes to Medicaid and the Affordable Care Act (ACA), and those changes may cause millions of people to lose health insurance. Attention now turns to implementation.

Of interest

OBBBA’s provisions take effect at different times. Key dates for some of the provisions of greatest significance include:

January 1, 2026 – Monies from the Rural Health Transformation Fund begin to flow to states
January 1, 2027 – States must have implemented Medicaid work requirements, or obtained an exception
October 1, 2027 – Provider taxes begin to decrease
January 1, 2028 – State directed payments begin to decrease, and consumers must pre-verify eligibility to receive advanced premium tax credits on the ACA Exchange

Our partners at McDermott+, one of healthcare’s most trusted and respected policy and lobbying consulting firms, created a comprehensive timeline detailing implementation dates for OBBBA’s major health provisions. They are also hosting a webinar to discuss key elements of the final legislation and its implementation.

Why you should care

OBBBA will impact whether and how patients are insured and hospitals are paid. Hospital leaders should be informed about when and how updated policies could impact your organization.

Looking to learn more?

McDermott+ offers valuable insights into what these policy updates mean and how to effectively navigate the changing healthcare landscape. Read more to see what McDermott+ is saying about the policies’ implementation and how your organization could be impacted.

Click here to read the OBBBA implementation timeline and click here to register for the webinar, Navigating the healthcare provisions of the One Big Beautiful Bill Act.