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Millions of Americans may lose health insurance under GOP tax plan. Here’s who will be affected most. - MarketWatch

1. House Republicans propose historic Medicaid cuts over the next decade. 2. CBO estimates $700 billion reduction in federal healthcare spending. 3. 8.6 million Americans could lose Medicaid coverage, affecting hospitals financially. 4. HCA Healthcare likely to be impacted by reduced Medicaid funds. 5. Senate opposition may hinder the bill's final approval.

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FAQ

Why Bearish?

Substantial cuts to Medicaid could lead to lower patient volumes for HCA hospitals, affecting revenues. Historical precedents, like Arkansas' 2018 Medicaid work requirement, show negative impacts on coverage and indirect financial repercussions for hospitals.

How important is it?

The article discusses legislation that would severely impact Medicaid funding, crucial to HCA's patient base and financials, making it highly significant for investors.

Why Long Term?

If enacted, the cuts will reshape the Medicaid landscape significantly, affecting funding and access that could take years to stabilize. Hospitals reliant on Medicaid, including HCA, may see long-term financial strain and service adjustments.

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