08/18/2026
An estimated $60 billion in federal Medicaid spending in 37 states (including DC) would likely exceed new federal limits on state directed payments for hospital services once fully implemented.
The 2025 reconciliation law made major changes to Medicaid eligibility and financing, including new limits on how much states can direct Medicaid managed-care organizations to pay for certain services, including hospital care.
More in our new analysis: https://on.kff.org/4fYwfgh