A report from VPM reveals that Governor Glenn Youngkin is once again downplaying serious warnings about the financial fallout from proposed Medicaid cuts — even when the alarm is coming from within his own administration. This time, he’s rejecting projections from Virginia’s Department of Medical Assistance Services' chief financial officer, who estimated the cuts could cost state hospitals $26 billion.

Earlier this month, when pressed by reporters on the Joint Economic Committee’s estimate that 322,000 Virginians could lose health care coverage, Youngkin dismissed the numbers as “made up” while applauding Trump’s tax bill.

“Glenn Youngkin only accepts reality when it’s politically convenient for him, and time and again, he’s proved that being Donald Trump’s puppet will always matter more to him than doing what’s right for Virginians,” said DPVA Chairman Lamont Bagby. “Ignoring dire warnings from his own administration about devastating Medicaid cuts that put lives, jobs, and entire communities at risk is a complete and utter failure of leadership. That’s why Virginians will elect Abigail Spanberger, Ghazala Hashmi, and Jay Jones, because they will always put our Commonwealth first.”

VPM: Virginia hospitals could lose $26 billion due to federal Medicaid cuts

• Virginia hospitals will lose out on $26 billion over 14 years under changes to the Medicaid program in President Donald Trump’s tax and spending law, according to new state estimates.
• The new federal law — legislation once known as the “One Big Beautiful Bill” that Trump signed on July 4 — is expected to slash federal funding for Medicaid, the government-backed program providing health care coverage for eligible low-income adults, families, children, pregnant people and people with disabilities.
• This change to state-directed payments is estimated to cause a $26 billion reduction over 14 years because MCOs in Virginia pay providers well over the Medicare rate, according to Chris Gordon, the chief financial officer of Virginia’s Department of Medical Assistance Services.
• Gordon told lawmakers last week that modeling shows such a loss in funding would have significant ramifications for the state’s economy.
• The cuts will create “a macroeconomic financial shock, not just to the hospitals, but also for the state writ large,” Gordon told the General Assembly’s Joint Subcommittee for Health and Human Resources Oversight in a presentation on July 15.
• Gordon added: "There will be a reduction in labor force participation — because the quickest thing to do is reduce head counts when you're faced with something like that — as well as population, as people move to try and migrate out to do jobs elsewhere.”
• A spokesperson for Gov. Glenn Youngkin called Gordon’s remarks into question, writing in a statement last week that the “comments were not based on an official DMAS analysis.”
• “Any economic impacts should be evaluated by individuals with specific expertise in hospital finance,” Youngkin spokesperson Peter Finocchio added.
• Finocchio did not respond to follow up questions on if Youngkin has been briefed on the DMAS estimate and whether the governor has concerns over the potential reduction and reports showing Virginians will lose their coverage [...].
• Analysts and health system leaders have warned of the possible ripple effects of the law’s impact on Medicaid, including potential hospital closures, health care service reductions and job losses.
• A June analysis by the Center for Healthcare Quality and Payment Reform found seven rural hospitals in Virginia are at immediate risk of closing, including Southern Virginia Regional Medical Center in Emporia and VCU Health Community Memorial Hospital in South Hill.
• In a June 12 letter, US Senate Minority Leader Chuck Schumer (D–N.Y.) and other Democrats raised concerns on the bill’s impact on rural hospitals to Trump and Republican congressional leaders.
• The letter states that six rural hospitals in Virginia are at risk of closing, citing information provided by the Cecil G. Sheps Center for Health Services Research at the University of North Carolina.