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Kentucky-based Addiction Recovery Care is under fire in a civil lawsuit for allegedly fraudulently billing Medicaid for a service. A federal database shows ARC made up 20% of all payments for that service in the country in a two-year period.
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The Rural Health Transformation Program was formed in last summer's budget reconciliation law, often called the One Big Beautiful Bill. That bill also contained hundreds of billions of dollars in cuts to federal Medicaid spending.
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Changes to both the Supplemental Nutrition Assistance Program and Medicaid passed in July 2025 as part of the One Big Beautiful Bill.
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How the new tax law could affect patients locally.
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Republicans' "Big Beautiful Bill" is estimated to kick millions of people off Medicaid, causing concern for health care providers in the mountains of eastern Kentucky, a region especially dependent on the federal program.
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Advocates warn this could be the return to a decades-long wait for services and that wait is already having a human cost.
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This means the committee has not produced any recommendations since it began in 2023.
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The suit alleges several Indiana hospital systems and managed care entities have committed “tens, likely hundreds” of millions of dollars of Medicaid fraud.
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The new state budget improved the Medicaid reimbursement rates for physicians this year. But Indiana Hospital Association President Brian Tabor said hospitals now need more support from the state.
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More and more Ohio residents are being added to waiting lists — and going without the home-based care they need — because of the state's low Medicaid reimbursement rates.