Medicaid Cuts Impact Iowa Hospitals as Facilities Close and Services Reduce
In the wake of the Medicaid cuts resulting from the One Big Beautiful Bill Act (OBBB), Iowa has seen significant changes in its healthcare landscape. Despite earlier assurances from Rep. Zach Nunn, who described the belief that Medicaid reductions would lead to hospital closures as a “myth,” the state is witnessing a series of facility shutdowns and service reductions.
The OBBB, supported by Nunn, aims to reduce Medicaid spending by $1 trillion by 2034. As many as 15 million Americans could lose their health coverage due to these cuts, with rural and low-income areas anticipated to feel the greatest impact. Health policy experts have warned that these cuts could prove catastrophic for hospitals and clinics heavily reliant on Medicaid reimbursements.
During an interview with WHO13 News in July 2025, Nunn stated, “I think the myth here is that rural hospitals are going to close down. That’s not the case.” However, since the enactment of OBBB, MercyOne, a Catholic nonprofit healthcare provider, has closed two facilities located in Ottumwa and Traer, with staffing reductions in Des Moines and Mason City. Patients in Ottumwa now face travel times of up to an hour to access medical care.
MercyOne has attributed the Des Moines staff reductions directly to the Medicaid cuts. In a statement, the organization explained, “It is not possible to simply absorb such a significant financial impact without making thoughtful, forward-thinking changes.”
Other medical facilities in Iowa have also been affected. The Pella Regional Medical Clinic in Ottumwa has announced a decrease in family and general practitioner services (source), and the Southeast Iowa Regional Medical Center in West Burlington has discontinued birthing services (source).
In spite of these developments, Rep. Nunn has not shown regret for backing the OBBB. He even launched a series of television ads in August 2025 promoting the bill’s benefits (source).
As Nunn campaigns for a third term, he is considered one of the most vulnerable Republican incumbents in the upcoming elections.
The post Nunn backed a $1T Medicaid cut and Iowa hospitals are feeling the pain appeared first on American Journal News.
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