The credit rating agency says changes in Medicaid “would force states to make difficult decisions about safety-net spending for hospitals that serve large numbers of indigent patients.” Also, the Dallas Morning News examines how Medicaid cuts will affect state residents.

Winston-Salem (N.C.) Journal:
Trump’s Budget Forces States Into ‘Difficult Decisions’ About Spending For Hospitals Serving Indigent Patients

A prominent rating agency, Moody’s Investors Service, said Thursday the proposed Trump administration budget could form an even darker financial cloud over the nation’s not-for-profit health-care systems and state legislatures.
Moody’s said the White House budget, if approved in its current form by Congress, would represent a “credit negative” for both groups.
The White House budget calls for $610 billion in Medicaid cuts over 10 years as well as eliminating $250 billion dedicated to state Medicaid expansion programs. (Craver, 5/28)

Dallas Morning News:
Neediest Texans Could Lose Billions In Medicaid Coverage Under Trump Budget, Obamacare Overhaul

The future of Medicaid is one of the thorniest issues Congress must untangle as it simultaneously contemplates an overhaul of the Affordable Care Act and Trump’s $4.1 trillion budget proposal. … Arlington Rep. Joe Barton, the Republican vice chairman of the House Energy and Commerce Committee, said Trump’s budget and the AHCA don’t go far enough in curbing Medicaid spending. He points out that the reductions don’t cut existing aid, but change the formula of Medicaid financing to reduce future spending. Asked if fewer Texans will receive Medicaid assistance under both proposals, Barton said it’s up to states to devise solutions: “We’ll let the states, within general guidelines, determine how they fund their various Medicaid programs.” (Leslie, 5/30)

This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.