The millions of low-income Americans whose healthcare may soon be covered by Medicaid could be dealt a historic blow by the federal government, which is considering drastic cuts to the program. The proposed budget cuts, which could wipe $880 billion off the Medicaid slate over the next ten years, passed. Michigan and California are expected to be hit especially hard. Such cuts are creating concern among leaders in these states, who are concerned they could lead to a healthcare crisis for vulnerable populations ranging from children, seniors, and people with disabilities to residents of rural areas requiring care from hospitals.
Michigan Faces Devastating Losses
Governor Gretchen Whitmer of Michigan has also warned loudly about what these cuts would entail. The federal government could cut Medicaid funding to the state by more than $1.1 billion a year. The figures also emerge from a new state report that shows more than 700,000 Michiganders could lose coverage. They are cancer patients, seniors in nursing homes, veterans, and low-income children.
It would have an even worse impact in rural areas. More than 20 percent of the population relies on Medicaid in the many counties of Huron, Sanilac, and Tuscola. Without this support, local hospitals won’t be around. Medicaid payments are critical to these rural hospitals for maternity care, emergency care, and long-term care. If federal money is cut, many services may be reduced or eliminated.
Economic and Community Impact
But Medicaid is more than just a health program: It is an integral part of the local economy. The program supports more than 30,000 jobs in Michigan by itself, and over a billion dollars in personal income and tax revenue. The state may not be able to fill the gap without federal support. This would mean cuts in service, loss of jobs, and potentially more residents packing up and leaving the state.
The cuts would further widen the urban/rural healthcare gap, as most rural areas lack access to any sort of healthcare. Hospitals may close. Driving an hour or two for basic care may be forced upon people. Less emergency is done when fewer patients are insured.
California’s Medicaid System Also Under Threat
Large cuts are also being planned in California. The state reports could lose more than $150 billion in Medicaid funding. This would imperil one of the largest of the state’s Medicaid systems. The advocates say millions of low-income families and elderly residents could be put at risk. California’s safety net hospitals and clinics, already serving many of California’s uninsured and underinsured, would be swamped.
Not just funding cuts belong in the changes that the president is proposing; he is also bringing back work requirements. Critics, however, say these policies are hard to manage and frequently lead to people losing coverage even when they’re eligible. Nearly 80,000 people in the past month lost Medicaid in a month because of paperwork malfunctions, not because they didn’t work.
State Leaders Call for Action
Healthcare providers, state leaders, and advocacy groups are asking Congress to rethink the proposed budget. If those people lose healthcare, the consequences will be severe for themselves but also for hospitals and local governments that are going to clean up the mess, they warn.
“We just don’t have the money to replace what we would lose,” said Michigan’s State Budget Director Jen Flood. Fill the gap, she said, and other vital services such as education, public safety, and support for veterans would be cut.
A National Concern
This is not something unique to Michigan or California. But other states could be cut, particularly those that expanded Medicaid under the ACA. The result: millions losing access to vital health care if the federal government goes ahead with this plan. It is now in the hands of Congress, and what they decide will determine for years to come what healthcare in the U.S. will look like.
