Medicaid Cuts in the Budget Bill: A Concern for the Vulnerable

Strategic Insights -

The Senate's newly passed budget bill could have a devastating impact on Medicaid, a shared federal-state health program that provides insurance coverage to over 70 million Americans with low incomes. The bill aims to reduce federal Medicaid spending by an estimated $930 billion over the next decade, a 10% cut from the program's total budget. This reduction is $100 billion more than the cut proposed by the House in May.

Key Takeaways:

  • The Senate bill would increase the number of Americans without health insurance by 12 million in 2034, a third of the current 26 million uninsured population.
  • The bill would also lead to several million more people losing coverage due to changes to other insurance programs, such as private plans sold on the Affordable Care Act marketplaces.
  • The primary way people would lose coverage is through increased paperwork, including the need to upload documentation to prove eligibility every six months.
  • The work requirements in the bill would lead to about half of those who lose their Medicaid coverage doing so because of the inability to navigate the reporting requirements.
  • States that have implemented work requirements have found that proving eligibility can be quite difficult, and many eligible people end up having their coverage ended.
  • Despite some amendments, the Senate bill still maintains a ban on Medicaid funding for abortion care at Planned Parenthood, which could force the closure of hundreds of clinics providing cancer screenings, contraception, and other medical care.

Statistics:

  • $930 billion: The estimated reduction in federal Medicaid spending over the next decade, a 10% cut from the program's total budget.
  • 12 million: The estimated increase in the number of Americans without health insurance in 2034 due to the Senate bill.
  • 26 million: The current number of Americans with no health insurance, which would increase by 12 million due to the Senate bill.
  • 10% increase: The CBO estimate of the number of Medicaid beneficiaries who would fail to report their activities and thus lose their coverage due to the work requirements.

Sources:

  • KFF Health News
  • Congressional Budget Office (CBO)
  • The Senate budget bill (with provisions described)
  • Julie Rovner, KFF Health News (interview)