Governor Andy Beshear has publicly challenged U.S. Rep. Andy Barr, correcting what he called misleading and inaccurate statements regarding the impact of federal Medicaid cuts on Kentucky’s rural hospitals and the use of Rural Health Transformation Program funding. The Governor urged Barr to address the consequences of his support for President Donald Trump’s “Big, Ugly Bill,” which Beshear asserts will cost Kentucky at least $21 billion in Medicaid funding.
This legislation is projected to strip health insurance from 250,000 Kentuckians and jeopardize the livelihoods of 20,000 healthcare workers. The Kentucky Hospital Association has repeatedly warned that 35 rural hospitals in the commonwealth are at risk of closure due to these cuts. “These Medicaid cuts have put 35 Kentucky rural hospitals at risk of closing. These aren’t my words; they come from the Kentucky Hospital Association, which repeatedly warned that our state faces the highest number of rural hospitals at risk of shutting down due to this cruel and careless legislation that Congressman Barr supported,” said Gov. Beshear.
While the Beshear administration secured $212.9 million through the Rural Health Transformation Program, federal guidelines prevent these funds from being directly used to protect struggling hospitals. Robert F. Kennedy Jr., Secretary for Health and Human Services, and Dr. Mehmet Oz, Administrator for the Centers for Medicare & Medicaid Services, explicitly stated in an op-ed that “Throwing money at struggling hospital operations is like a Band-Aid on a severed artery, leaving a broken system in place.” The $212.9 million, accepted in December 2025, will instead be allocated over five years to address broader rural health challenges, including chronic conditions, maternity care deserts, and gaps in oral, emergency, and behavioral health services.