Donald Trump’s ‘Big Beautiful Bill’ means $3.8B cut to Florida health care system

President Donald Trump’s “Big Beautiful Bill^[1]” will cut $3.8 billion from Florida’s health care system, with that money primarily affecting Florida hospitals.

Brian Meyer, Florida’s Medicaid director^[2], gave an update at the House Health Care Facilities and Systems Subcommittee^[3].

The new law is making cuts to Medicare, among other reforms. One of the major changes in Florida will be a cap on state-directed payments going to hospitals, with the changes setting that cap at 110% of Medicare, Meyer told lawmakers.

Five Florida programs are over that cap and currently receive $9 billion. That total will drop to $5.2 billion in state-directed payments by 2034-2035, Meyer told the group of lawmakers after facing earlier questions in the week^[4] about how children are being disenrolled from the Florida KidCare program for not paying their premiums.

The Hospital Directed Payment Program^[5] is currently being paid $8.1 billion for 2025-26. That program will face a $3.5 billion cut by 2034.

Other programs facing decreases by 2034 are the Physician Supplemental Payment Program, with a $234 million cut, the Public Hospital Physician Program, at $9 million, and two Florida Cancer Hospital Programs for $56 million and $17 million.

“What this provision does is any state directed payments that are above 110% of Medicare beginning in 2028 will start stepping down annually 10% a year until you get to the 110% of Medicare threshold. We currently have five state directed payment programs that are above 110% that will need to be stepped out,” Meyer said.

“Depending upon where they are with respect to the percent of Medicare, some will get to that 110% cap sooner. Others will take more years to get there at a 10% annual reduction.”

The House subcommittee, which met as the upcoming Legislative Session’s committee week began, is focused on the access and affordability of health care.