In Iowa, the ramifications of the One Big Beautiful Bill Act (OBBB), a legislative measure supported by Rep. Zach Nunn, are becoming apparent. This law, which aims to reduce Medicaid funding by $1 trillion by 2034, is linked to significant service reductions and closures in the state’s medical facilities.
Despite Nunn’s assertion to WHO13 News in July 2025 that the concerns about rural hospital closures were unfounded, “I think the myth here is that rural hospitals are going to close down. That’s not the case,” the reality has proven otherwise. Since the enactment of OBBB, seven medical facilities in Iowa have either closed, laid off staff, or reduced their services.
MercyOne, a Catholic nonprofit organization operating several medical offices in Iowa, has been particularly affected. It has closed its facilities in Ottumwa and Traer, and has reduced staffing at its Des Moines and Mason City locations. Particularly in Ottumwa, a part of Nunn’s district, patients now face longer travel times for medical care.
The ripple effects of Medicaid cuts are further evidenced by MercyOne’s reference to these fiscal challenges as a primary reason for its workforce reductions. The nonprofit emphasized, “It is not possible to simply absorb such a significant financial impact without making thoughtful, forward-thinking changes.”
The Pella Regional Medical Clinic in Ottumwa has similarly responded by scaling back its family and general practitioner services, and the Southeast Iowa Regional Medical Center in West Burlington has ceased its birthing services. This trend raises concerns among health policy experts about the sustainability of medical care in areas heavily reliant on Medicaid reimbursements.
Despite these developments, Nunn has not shown regret for his support of the OBBB. In fact, he has invested in a series of advertisements highlighting the purported advantages of the bill. As Nunn seeks a third term, his stance on the OBBB could be a focal point, given that he is seen as a vulnerable Republican incumbent in the upcoming election.
For more information, read the full article on American Journal News. The post originally appeared on American Journal News.
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