The Shapiro Administration is sounding the alarm over proposed federal Medicaid cuts, warning that more than 570,000 Pennsylvanians could lose or be priced out of health care coverage.

Officials joined rural hospital leaders at Wayne Memorial Hospital last week to outline the far-reaching consequences of the proposed budget plan being pushed by Congressional Republicans.

If passed, the plan would cut Medicaid coverage for over 300,000 people and make health insurance unaffordable for another 270,000 who rely on Pennie, the state’s insurance marketplace.

Officials say the cuts would strain health systems across Pennsylvania, especially in rural areas where hospitals operate on thin margins and face limited staffing.

“These proposed cuts put Pennsylvanians’ access to care in serious jeopardy,” said Nicole Stallings, President and CEO of the Hospital and Healthsystem Association of Pennsylvania. “Hospitals cannot absorb this kind of financial blow and will be forced to reduce services or shut down altogether.”

Wayne Memorial Hospital CEO Jim Pettinato emphasized the facility’s mission to provide accessible care for all residents and urged lawmakers to carefully consider the harm the cuts would cause.

Other rural leaders echoed the concerns. Loren Stone of Endless Mountains Health System warned that if Medicaid reimbursement does not match costs, services will shrink and patients will face longer travel times. Shelly Riser, head of the Pennsylvania Association of Community Health Centers, said nearly half of the patients served by community health centers rely on Medicaid and that the proposed changes could eliminate core services.

Sara Adornato of Barnes-Kasson County Hospital said the proposed cuts would threaten not only health services but also employment, calling Medicaid funding essential for keeping rural hospitals open.

The Shapiro Administration continues to push for protections for vulnerable residents and stable funding to maintain access to care throughout Pennsylvania.