What the ‘One Big Beautiful Bill Act’ Means for Hospitals and Healthcare

Federal Policy Update
Jul 08, 2025
Article Background

What’s happening

President Trump signed the One Big Beautiful Bill Act into law on July 4th, precisely meeting his self-imposed deadline. The bill underwent many changes since it originally passed the House of Representatives on May 22nd. The final law still makes profound changes to Medicaid and the Affordable Care Act, though many provisions included in the original House-passed bill were removed or amended along the way.

Of interest

The new law includes many changes of note, including the following:

Changes to Medicaid and Affordable Care Act Exchange enrollment processes and eligibility standards – some of which begin immediately
Medicaid work requirements – Effective by 2027
Provisions that will reduce state provider tax arrangements – Begins to be effective in 2028 and transitions over five years
A new $50B fund to shore-up rural healthcare – Begins to be effective in 2028 and transitions over five years
A provision boosting Medicare payments for physician services in 2026 – Effective 2026

Our partners at McDermott+, one of healthcare’s most trusted and respected policy and lobbying consulting firms, created a comprehensive overview of the health policy-related changes in the final law. McDermott+ also has other key resources in their Reconciliation Roadmap Resource Center to help you understand the law’s potential impact on your organization.

Why you should care

The One Big Beautiful Bill Act will impact whether and how patients are insured and hospitals are paid. Hospital leaders should be informed about the potential policy changes and how they could impact your organization.

Looking to learn more?

McDermott+ offers valuable insights into what these policy updates mean and how they could affect organizations. Read more to see what McDermott+ is saying about these proposals and how your organization could be impacted.

Click here to read the summary of the legislation’s healthcare provisions and click here to explore the Reconciliation Roadmap.