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Virginia hospitals face 'billions' in cuts as Medicaid officials await federal guidance

VIRGINIA, UNITED STATES, JUL 23 – Virginia Medicaid faces uncertainty after federal legislation imposes new work requirements and verification rules, risking $2 billion annual hospital losses and possible rural closures.

  • Harborview Medical Center may face a negative margin of-0.9% due to expected cuts in federal Medicaid direct payments, as stated by CEO Sommer Kleweno Walley.
  • Virginia officials are uncertain about the impacts of federal cuts, as they await guidance from the Centers for Medicare and Medicaid Services, according to Cheryl Roberts, director of the state agency that administers Medicaid.
  • Changes in Virginia's Medicaid enrollment process will require proof of eligibility every six months starting January 1, 2027, according to Cheryl Roberts.
  • Beginning in October 2026, the federal government will decrease the reimbursement rate for emergency medical care for undocumented immigrants, as reported by Cheryl Roberts.
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The Corvallis Advocate broke the news in on Wednesday, July 23, 2025.
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