While state budget-writers are looking hard at their crystal balls to make their forecasts, Congress will soon get into a serious debate about the size and structure of cuts to Medicaid funding.
The ramifications of significant reductions are harder to debate: Cuts to Medicaid are most immediately cuts to state budgets, and no state is immune. State Medicaid programs provide short- and long-term coverage for people who are seriously ill, between jobs, working part-time or working full-time for small businesses. Without access to health insurance, people of all ages have worse health outcomes, increased emergency room visits, sicker babies, and serious medical debt. Those are all costs that we share as a community.
Medicaid is one of the most effective public health programs in the United States, providing essential medical coverage to millions of Americans. Cutting federal Medicaid funding would be a shortsighted and harmful decision that would undermine state economies, hurt rural communities, and create unnecessary barriers to healthcare access. Reform should be intentional and mindful of the side effects of destabilizing millions of American families.
When Medicaid funding is reduced, the burden falls on states, hospitals, and families.
Medicaid plays a crucial role in supporting rural communities, where access to healthcare is often limited. Many rural hospitals depend on Medicaid reimbursements to keep their doors open, and when funding is cut, these hospitals are at risk of closure. This can be devastating for these communities, where a hospital closure can mean the difference between life and death in an emergency.
Moreover, small businesses rely on Medicaid to provide health coverage to employees, and most Medicaid-enrolled adults under 65 years old are working. Unlike large corporations that can afford to offer comprehensive benefits, small businesses often struggle to provide health insurance to their employees. Medicaid fills this gap, ensuring that working individuals have health insurance.
No one is arguing Medicaid is a “perfect” program– only that program reform should fix problems, not punish people. Thoughtless federal funding cuts don’t reduce fraud but will force states to make painful cuts that impact local families and businesses.
Essential Support for Working People and Chronic Disease Patients
Medicaid is not just a safety net for the unemployed—it is a crucial program for millions of working Americans. Many low-wage workers, particularly in service industries, retail, and caregiving professions, do not receive employer-sponsored health insurance and rely on Medicaid for coverage. Without it, they would be left with no affordable options for healthcare. The lack of insurance coverage is what forces people to avoid both basic preventive care and even emergency care– until it’s too late.
Additionally, Medicaid is essential for individuals with chronic illnesses such as diabetes, heart disease, and asthma. These patients require consistent and reliable medical care to manage their conditions and stay healthy enough to work. When Medicaid funding is cut, chronic disease patients face disruptions in their treatment, leading to worse health outcomes, increased emergency room visits, and higher long-term healthcare costs.
Medicaid Cuts Slam the Door on Preventive Care and Early Intervention
The current administration has clearly articulated its goal of reducing chronic disease, and we could not be more pleased. But reducing chronic disease requires early diagnosis and intervention, which is impossible without health insurance and access to providers who can guide us back to health.
“By the time I see my patients as a critical care doctor, it is often so late in the course of their disease that the best I can do is treat their symptoms versus offer a cure. To truly reverse the development of chronic disease, we have to start in childhood, with access to healthful food and exercise and clean air and high-quality health care.”
For millions of American children, the only access to care is through Medicaid– one more reason to proceed with caution.
States Need Federal Support to Solve Local Problems
Reducing federal Medicaid funding would force states to make impossible choices—either raising taxes to cover the gap or cutting essential healthcare coverage. Many states operate on tight budgets and cannot afford to absorb federal cuts without jeopardizing their ability to provide necessary care. Medicaid is a federal-state partnership, and the federal government must uphold its responsibility to help states care for their residents.
Instead of slashing Medicaid funding, we should be investing in the program to strengthen healthcare access, support state economies, and ensure that working families, rural communities, and individuals with chronic conditions have the care they need. Medicaid is not just a lifeline for those who rely on it—it is a smart, efficient, and necessary investment in the health and well-being of all our communities.
You Can Help
Click here to send a letter to your member of Congress, asking them to preserve Medicaid.