Republicans are seeking to limit a tax loophole that gives states more federal matching funds. Many state budgets could be hurt.

Senate Republicans have unveiled a sweeping plan to overhaul the Medicaid program, with changes policy analysts warn could lead to even greater coverage losses and pain for hospital systems than the aggressive proposal passed by the House of Representatives last month.

Hospital groups slammed the Senate’s version of the GOP legislation. The upper chamber “made a bad bill worse,” said Chip Kahn, CEO of the Federation of American Hospitals.