This post is adapted from an article written by Statewide Poverty Action Network (SPAN), an anti-poverty advocacy organization located in Seattle, Washington. Read original article here.
Massive Cuts to Medicaid Are on the Table. Here’s What You Need to Know.
Trump-backed cuts to Medicaid and SNAP are working their way through Congress and have passed through the House of Representatives. This post will focus on Medicaid, which provides health coverage to 1.8 million Washingtonians.
Read on to learn more about this crucial service, what would happen without it, and what actions you can take to stop these proposed cuts.
Already understand why gutting Medicaid would be devastating? Take action and share your story of how Medicaid has helped you.
What’s the difference between Medicaid and Medicare?
Medicaid is the government program that provides health insurance to adults and children in the U.S. without access to other coverage. Medicaid is jointly administered by federal and state governments, and each state has different requirements for eligibility that are often based on income. Washington state expanded Medicaid under the Affordable Care Act and covers the 1.8 million adults and children, who are United States (US) citizens and whose family income is at or below 138% of the Federal Poverty Level.
Medicaid is a key source of coverage for many vulnerable populations: 80% of children in poverty across the US are covered by Medicaid. In Washington, 47% of children are covered by the program. However, the programs covered by Medicaid go far beyond basic healthcare, such as doctor appointments and prescriptions. In the US, 41% of births are covered by Medicaid, as are 62% of nursing home stays.
Medicare is related government program that provides health insurance to adults 65 and older, as well as adults under 65 with certain disabilities. A person can be covered by both Medicare and Medicaid simultaneously since they cover different treatments and services.
Both Medicaid and Medicare are key access points to healthcare for millions of people. The House of Representatives budget proposal includes devastating cuts to Medicaid, but not to Medicare.
What are the proposed cuts? What could happen?
The House of Representatives just approved $880 billion of Trump-endorsed cuts to Medicaid and $230 billion in cuts to SNAP. These cuts would be disastrous for all Washingtonians, whether covered by Medicaid or private insurance. The proposed cuts are designed to pay for $4.5 trillion in tax cuts for billionaires, which means that the budget resolution would still add to the federal budget deficit, even while making these devastating cuts.
Although the resolution does not outline specifically how Medicaid would cut $880 billion of spending, any of the options would be devastating for Washingtonians. Instituting Medicaid work requirements, which have been found ineffective, would put 782,000 Washingtonians at risk of losing coverage – 42% of our state’s Medicaid enrollees. Reducing the federal matching assistance percentage for states that expanded Medicaid under the Affordable Care Act would threaten Medicaid coverage for 647,416 Washingtonians. A per-enrollee cap on federal Medicaid funding would force states to increase their own spending, cut eligibility or benefits, or reduce payments to healthcare providers.
In Washington state, 57% of all federal funding sent to our state goes to Medicaid – in 2023, WA received $12.5 billion of federal funding for the program. Without this funding, Washington’s healthcare system would be gutted. Hospitals across Washington would be forced to close, limiting access to healthcare for all patients whether they are covered by Medicaid or private insurance. At particular risk are already vulnerable populations: 47% of children in Washington are covered by Medicaid, and this number skyrockets in rural areas.
To avoid losing crucial services, the State Government would have to allocate more money towards healthcare to make up for lost federal funding. Reducing the federal matching assistance percentage for states that expanded Medicaid under the Affordable Care Act would force our state to spend $2,754,000,000 more to maintain the expansion, which would exacerbate our state’s already monumental budget deficit. As state-level cuts to services are on the table, a loss of federal funding for Medicaid would be catastrophic to our state’s ability to provide healthcare to Washingtonians.
What can we do?
Cuts to Medicaid would devastate the State of Washington, taking away lifeline services from people already struggling to make ends meet. As of now, these cuts are just a proposal. The resolution has passed through the House of Representatives but must also pass through the Senate. Then, additional committees write legislation to make the resolution a reality. This additional legislation also must pass through the House and Senate once again before being signed by the President. This long process means that there is still time to act to make your voice heard and fight for the right to healthcare. The moment to act is here, tell your Representatives and Senators to protect funding for Medicaid and SNAP today!