Where the One Big Beautiful Bill’s cuts will hit, state by state

Modern Healthcare – Thursday, June 19, 2025
By Tim Broderick

Healthcare spending would be cut by almost $800 billion over the next 10 years, with hospitals bearing the brunt of the reductions if the House-passed version of the One Big Beautiful Bill Act of 2025 becomes law.

The Urban Institute and Robert Wood Johnson Foundation used updated Congressional Budget Office projections to estimate how the reconciliation bill, now before the Senate, would impact spending for healthcare services, including in hospitals and for physicians and prescription drugs from 2025 through 2034.

Over the next decade, the bill would decrease spending by $321 billion in hospitals, $81 billion among physicians and $191 billion for prescription drugs. Spending for other healthcare services would decline by $205 billion.

If the premium tax credits were allowed to expire, spending would decline by an additional $262 billion. The study found spending in hospitals would drop by $103 billion, spending for physicians would decline by $39 billion and prescription drug spending would fall by $50 billion. Spending on other healthcare services would drop by $70 billion.

Altogether, if the reconciliation bill is passed and the tax credits are allowed to expire, healthcare spending would decline by almost $1.1 trillion in the 10-year period, according to the research.

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