Opening Remarks & Panel 1: Implications of OBBBA: Sweeping Healthcare Cuts & Muni Credit

The nearly $1 trillion of Medicaid cuts are expected to mean that 11.8 million Americans will lose their health insurance by 2034. The OBBBA has a variety of provisions that will decrease Medicaid enrollment and shift costs to states.

States are expected to see structural budget pressures as reductions in federal funding for safety net programs could strain their budgets, especially in states with higher poverty rates and greater reliance on Medicaid and SNAP.

The OBBBA also threatens negative credit impacts for many healthcare issuers, particularly rural hospitals.

How does the public finance industry address these challenges? What are the ratings agencies factoring in? How can insurance bolster the sector? What other knock-on effects will this have on broader muni credit?

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