Medicaid Cuts Spark Fears, Action Across US States

The prospect of cuts to Medicaid, America's largest public health insurance program, has prompted action across several U.S. states.

Why It Matters

Medicaid gives health coverage to some individuals and families, including children, parents, people who are pregnant, elderly people with certain incomes, and people with disabilities—although coverage varies widely by state, both in terms of benefits and eligibility criteria. As of October last year, more than 72 million people across the country had Medicaid coverage.

A budget blueprint narrowly approved by the House of Representatives this week could slash $880 billion over a decade from federal health and energy programs. The program is jointly funded by states and the federal government through a federal matching program.

Medicaid Cuts

The bill instructs the House Energy and Commerce Committee, which oversees Medicaid, to slash $880 billion in mandatory spending—although the bill did not specifically mention Medicaid.

House Speaker Mike Johnson has said that cuts are not on the way for Medicaid, but both he and President Donald Trump have said fraud and waste needs to be eliminated. Trump has also said that illegal immigrants are using Medicaid, although they are not eligible to enroll in federally funded coverage.

Earlier this year, a Republican budget memorandum suggested introducing work requirements for Medicaid recipients and reducing the federal match.

Democratic lawmakers have said the budget plans put Medicaid on the "chopping block to pay for Donald Trump's tax handouts for billionaires and mega-corporations." Experts have also said the scale of the cuts won't be possible without rollbacks to Medicaid.

States Taking Action

Legislative work has already begun in Oregon to protect Medicaid enrollees. On Thursday, the state's House of Representatives passed HB 2010, a bipartisan bill that would ensure ongoing funding for the state's Medicaid program, the Oregon Health Plan. The bill will now advance to the state Senate. According to KFF Health, 23 percent of the Beaver State's population was covered by Medicaid and the Children's Health Insurance Program as of August 2024.

Democrats in New Hampshire also hosted a roundtable discussion with healthcare experts and local leaders to discuss the potential impact of the cuts. In Washington, where some 782,000 people are enrolled in Medicaid, there have been similar discussions hosted by Democratic Senator Patty Murray.

It is not only Democrats sounding the alarm. In Nevada, Republican Governor Joe Lombardo signaled his concern regarding potential Medicaid cuts in a letter to Democrat and GOP leaders in the state, saying cutbacks could "destabilize public and private healthcare providers" and "disrupt care for those who rely on
Medicaid."

And in Republican Alabama, where nearly 21 percent of the population gets Medicaid, more than 100 organizations have come together to urge lawmakers not to continue with the budget cuts.

What People Are Saying

Speaker Mike Johnson told CNN: "The White House has made a commitment. The president said over and over and over, 'We're not going to touch Social Security, Medicare or Medicaid.' We've made the same commitment. Now that said, what we are going to do is go into those programs and carve out the fraud, waste and abuse, and find efficiencies."

Oregon House Speaker Julie Fahey said: "HB 2010 will help ensure that those Oregonians continue to have access to care and that our hospitals and providers have the resources they need to serve all Oregonians. Regardless of whether Congress cuts Medicaid funding this year, passing HB 2010 is the surest way to position us to accomplish those goals."

Nevada Governor Joe Lombardo said in a letter to state leaders: "An abrupt reduction in federal funding would not only disrupt care for those who rely on Medicaid, but would also destabilize public and private healthcare providers, leading to workforce reductions, service limitations, and financial strain on already overburdened health care facilities."

What's Next

The resolution now moves to the Senate, where it is expected to face substantial opposition from Democrats but could ultimately pass because of Republicans' control of the chamber.