(Dover, DE – August 20, 2025) – Delaware hospitals are expected to lose around $200 million annually due to federal Medicaid cuts in the “One Big Beautiful Bill Act,” prompting state and federal advocacy.
DHA hosted a meeting with Delaware’s Congressional Delegation on Wednesday at Bayhealth Conference Center in Dover, where hospital members of the Delaware Healthcare Association sounded the alarm on the impact of recent federal policy decisions. An analysis from DHA found that approximately $200 million in annual cuts are expected to Delaware’s acute care and post-acute hospitals statewide, which will strain budgets and services here in the First State.
“Senator Coons, Senator Blunt Rochester and Congresswoman McBride have been steadfast champions for Delaware on The Hill and will continue to elevate the OBBBA’s implications on Delaware. Cuts and changes to Medicaid will drive the number of people without health insurance coverage by the thousands, resulting in worsening health conditions and more trips to hospital emergency rooms. Hospitals will undoubtedly face strains to critical resources, overburdening the healthcare workforce, stunting innovation, and risking healthcare access, but the fight is not over. DHA and our members will navigate this challenging landscape with federal and state leaders as well as our partners to maintain high-quality access to care,” said Brian Frazee, President & CEO of the Delaware Healthcare Association.
“The Trump Administration’s cruel attacks on Medicaid will devastate Delawareans up and down our state,” said U.S. Senator Chris Coons. “Today, I heard directly from the leaders delivering health care services to every community in Delaware about how the Trump tax bill is harming their ability to provide for Delawareans, creating a heartbreaking and immoral situation that will only make it harder for my constituents to get the care they need. Let me be very clear: I will never stop fighting back against this and any other threat to the health care Delawareans need and deserve.”
“I was grateful to stand alongside my partners in the federal delegation and the Delaware Healthcare Association to shine a light on how these harmful cuts to health care coverage will impact our communities,” said Senator Blunt Rochester, a member of the Senate Health, Education, Labor, and Pensions (HELP) Committee. “These cruel cuts not only impact those directly on Medicaid, they will increase health care costs for everyone. I will continue supporting the work being done by our partners throughout our state to ensure Delawareans get the information, resources, and care they need in this challenging time.”
“When hospitals lose funding, our communities lose care,” said Rep. Sarah McBride. “The Trump administration’s so-called ‘One Big Beautiful Bill’ doesn’t reform our health care system—it sabotages it. These cuts will force tens of thousands of Delawareans off coverage and stretch our workforce even thinner. But what gives me hope is what we have right here in Delaware: doctors, nurses, and health leaders working together to protect access to care. I’ll keep fighting alongside Delaware’s health care leaders, advocates, patients and my colleagues, Senators Coons and Blunt Rochester, to make sure families stay covered and hospitals stay open.”
Kaiser Family Foundation estimates that over 10 years, OBBBA will cause as many as 57,000 people to lose Medicaid coverage, increase the number of uninsured by about 32,000 people and cut as much as $5 billion in federal Medicaid funding to Delaware. More than 3,000 Delawareans will also lose their Affordable Care Act (ACA) marketplace coverage, and the number could swell to 13,000 uninsured if the ACA enhanced premium tax credits (aka subsidies) are allowed to expire at the end of the year.
Also today, State Senate Health and Social Services Committee Chair Senator Marie Pinkney will convene a roundtable discussion with state Medicaid officials, health providers, and community leaders about the future of Medicaid in Delaware. DHA members will participate and share insights and perspectives from on the frontlines of healthcare delivery in the First State, and what’s at stake for patients and providers.
“There is much uncertainty, but with our federal and state leaders and continued partnership toward our shared goal of making the First State first in health, we are hopeful that Delaware will become a model for the country,” Frazee, of the Delaware Healthcare Association, continued.
About the Delaware Healthcare Association
The Delaware Healthcare Association (DHA) was formed in 1967 and is a statewide trade and membership services organization that represents and serves hospitals, health systems, and related healthcare organizations in their role of providing a continuum of appropriate, cost-effective, quality care to improve the health of the people of Delaware. DHA’s mission is to provide policy and advocacy leadership in creating an excellent environment to support our members in helping every Delawarean to be as healthy as they can be.