Is your health coverage safe? Why Medicaid could face major cuts

Big decisions are being made by House Republicans, and they could have serious consequences for millions of Americans.

A new budget plan is making waves, and while it doesn’t directly mention Medicaid, experts warn that major healthcare cuts could be on the horizon.

With millions relying on Medicaid for essential care—from doctor’s visits to hospital stays—any funding reduction could have a ripple effect on families, seniors, and people with disabilities.

So, what’s actually happening, and how could it impact your access to healthcare? We’re breaking it all down.



The House GOP budget resolution is at the heart of the debate, which calls for $880 billion in mandatory spending cuts over the next ten years.

The goal? To extend the 2017 tax cuts introduced under former President Donald Trump, which are set to expire.

While Medicaid isn’t specifically mentioned, policy experts say there’s almost no way to hit that massive savings target without cutting into one of the federal government’s biggest expenditures.

Robin Rudowitz, Director of the Program on Medicaid and the Uninsured at KFF, warned: “The way the math would work is that those cuts would largely need to come out of Medicaid.”


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Millions rely on Medicaid for essential healthcare, but proposed budget cuts could put coverage at risk. Image source: Luis Melendez / Unsplash



Medicaid isn’t just another line in the federal budget—it’s a lifeline for millions of Americans. The program provides health coverage to:
  • 4 in 10 children, including over 80% of children living in poverty
  • 1 in 6 adults and nearly half of all adults in poverty
  • 1 in 4 adults with disabilities
  • 41% of all births in the US


The program is jointly funded by states and the federal government, with states paying upfront and the federal government reimbursing at least 50% of costs.

The Affordable Care Act (ACA) expanded Medicaid in many states, with the federal government covering 90% of the costs for newly eligible enrollees.

However, not all states have embraced expansion. Florida and Texas opted out, while California, New Mexico, Arkansas, Louisiana, Kentucky, West Virginia, and New York, have some of the highest Medicaid enrollment numbers.



House Republican leaders insist they are not targeting benefits—only waste, fraud, and abuse.

House Speaker Mike Johnson, R-La., stated: “We’re going to take care of those who are rightful beneficiaries of the program. We’re going to cut the fraud, waste, and abuse and that’s where we’re going to get the savings to accomplish this mission.”

But experts say otherwise. Edwin Park, a Research Professor at Georgetown University’s McCourt School of Public Policy, argues that Medicaid isn’t any more prone to fraud than other healthcare programs.

He warned: “The fraud argument is being used as a frame to justify Medicaid cuts, but the major proposals that are under consideration today to achieve this $880 billion target are the same major Medicaid cuts that were included in the [2017] Affordable Care Act repeal and replace bills that ultimately failed.”


Cuts to Medicaid funding wouldn’t just impact low-income families—they would ripple across the entire healthcare system. If federal funds shrink, states will be forced to make painful choices.

Allison Orris, director of Medicaid policy at the Center on Budget and Policy Priorities, explained: “Capping federal spending doesn’t make health care needs go away. It just shifts the risk of higher spending to states and makes states make choices about: do they cut coverage, do they cut eligibility, do they cut provider rates?”

Without Medicaid, millions of Americans would be left uninsured, still in need of care but with no way to afford it.

Robin Rudowitz added: “We know that most people who lose Medicaid would likely become uninsured and then would still need health care services, and may still show up to clinics, and those providers would likely not be reimbursed.”



Want to stay informed about the latest developments in Medicaid?

Recent reports highlight concerns over Medicaid funds being spent on ineligible recipients, raising questions about oversight and accountability.

Meanwhile, proposed policy changes could reshape Medicaid and Medicare, potentially affecting coverage and access for millions.
Key Takeaways
  • House Republicans have adopted a budget resolution that could result in significant cuts to Medicaid, potentially jeopardising the coverage for millions of low-income and disabled people.
  • The budget plan suggests $880 billion in mandatory spending cuts over the next 10 years, which would be challenging without cutting Medicaid—one of the largest sources of federal spending.
  • Medicaid covers approximately 72 million people in the United States, including low-income individuals, some older adults, pregnant women, and people with disabilities.
  • Experts argue that any proposed cuts that target fraud, waste, and abuse in Medicaid cannot account for the savings needed without harming enrollees, and substantial cuts could lead to people losing coverage and hospitals closing, affecting access to care.
Have you or someone you know been impacted by Medicaid? Are you concerned about the proposed budget cuts? How do you think these changes will affect our healthcare system? We invite you to share your thoughts, experiences, and questions in the comments below.

Read more: Is your health care is at risk? Uncover what the shocking Medicaid cuts in the House budget mean for you
 
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Reactions: Dragondust
My mother was recently affected by those cuts and they took about $400 away which include her medicine and she is 85 years old with no way to pay for medication. This is absolutely disgusting how they treat the seniors.
 

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