Catholic Health Association Warns of Devastating Impact of Upcoming Medicaid Cuts

Strategic Insights -

As part of the new federal budget bill, Congress is set to cut $1 trillion from healthcare funding over the next decade, which is expected to increase the number of people without health insurance by 10 million. The Catholic Health Association (CHA) is sounding the alarm, warning that the cuts will have a devastating impact on vulnerable populations, including the poor, the elderly, and children.

Lisa Eisenhauer McPherson, vice president of Medicaid managed care organizations and state government programs at Mercy, remembers the struggles of patients who lacked health insurance and had to drop out of treatment due to financial constraints. She fears that the upcoming cuts will lead to more Americans losing access to needed healthcare. "The unfortunate thing is that the people that are most impacted are the people who are most vulnerable," she says.

CHA has created resources to help its members advocate for the preservation of the advance premium tax credits, which help millions of Americans afford health insurance. Mercy, along with other Catholic health care and social service providers, is bracing for the drop in federal funding and preparing to help people who will likely lose benefits navigate the changes.

Key Takeaways:

  • The Congressional Budget Office estimates that the new federal budget bill will mean about $1 trillion less in healthcare funding over the next decade, increasing the number of people without health insurance by 10 million.
  • 4.2 million more people are expected to lose coverage if Congress doesn't extend the enhanced premium tax credits for low-income people who buy insurance on the federal marketplace.
  • Trinity Health projects its bottom line will take an annual hit of about $1 billion once the Medicaid cuts are fully in place, which is expected to take about 18 months.
  • Medicaid covers about 20% of Trinity Health's patients across its 26-state catchment area, and the system estimates about 105,000 of them will be without coverage once the cuts are implemented.
  • Catholic health care and social service providers are working together to influence the revised regulations, including those related to work requirements, which will require states to verify every six months that adults without young children are working or doing community service at least 80 hours per month.
  • Philanthropy is expected to play a critical role in helping Catholic Charities agencies meet the increased need for case management and immediate help.

Statistics:

  • $1 trillion: The amount of money being cut from healthcare funding over the next decade.
  • 10 million: The expected increase in the number of people without health insurance.
  • 4.2 million: The number of people who will lose coverage if Congress doesn't extend the enhanced premium tax credits.
  • 105,000: The estimated number of Medicaid recipients who will be without coverage once the cuts are implemented.
  • 18 months: The expected timeframe for the Medicaid cuts to be fully in place.
  • 20%: The percentage of Trinity Health's patients who are covered by Medicaid.
  • $1 billion: The annual hit to Trinity Health's bottom line once the Medicaid cuts are fully in place.
  • 80 hours per month: The minimum number of hours that adults without young children will need to work or do community service to remain eligible for Medicaid.

Sources:

  • Catholic Health Association (CHA)
  • Congressional Budget Office
  • Mercy
  • Trinity Health
  • Catholic Charities USA
  • United States Conference of Catholic Bishops
  • The Partnership for Medicaid