In his recent newsletter, Sen. Dan Sullivan claims he “led the effort in last year’s Working Families Tax Cuts Act to create a new $50 billion Rural Health Transformation Program (RHTP).” This act has been called “the Big Beautiful Bill” by President Trump
Sullivan says Alaska will receive $272 million per year for five years, or nearly $1.4 billion total, which is “the second-highest funding level of any state.” He says it will allow “state and local leaders to design solutions that improve affordability, expand access, and strengthen health care delivery across both urban and rural communities.”
Some worthwhile projects probably will be funded through this grant program
However, that same law cut about $1.1 trillion from healthcare and food assistance programs over 10 years, including cuts to Affordable Care Act health insurance subsidies and huge cuts in Medicaid scheduled to take effect later this year. These funding cuts greatly exceed the $50 billion Rural Health Transformation Program grants
Between 9,400 and 13,600 Alaskans are expected to lose Medicaid coverage when the new rules take effect, and more than 28,000 Alaskans are directly affected by Affordable Care Act subsidy cuts and the expiration of premium tax credits
According to reports, about 3,000 Alaskans have dropped out of the ACA marketplace, and other enrollees are experiencing significant increases in premiums, often three or four times the monthly premiums before this law took effect. Many of them have opted for health insurance policies with much larger deductibles, significantly increasing their out-of-pocket costs
This law will negatively affect the finances of healthcare facilities throughout Alaska and could cause some hospitals and clinics, especially in rural areas, to reduce services or close. Approximately 53% of Alaska’s rural residents depend on Medicaid, including about two-thirds of Alaska Natives
As uncompensated care increases, healthcare facilities try to pass increased costs on to other patients and insurers. This will not “improve affordability” or “expand access,” as Sullivan claims
If Sullivan hopes to improve healthcare in rural Alaska, he should acknowledge that his vote to cut ACA subsidies and Medicaid was a mistake and try to convince his colleagues in the U.S. Senate to restore funding for these programs
Mark S. Johnsonlives in Juneau and has lived in Alaska for 48 years. He retired from the Alaska Division of Public Health in 2004 and has a cumulative 52 years of professional and volunteer public health and healthcare system experience, including three terms on the Bartlett Regional Hospital Board of Directors. He is not affiliated with any political campaigns
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