Card 11: Medicaid: Why This Matters to You

MEDICAID:
Why This Matters to You

The House passed a budget plan proposing up to $880 billion in Medicaid cuts over a decade. These cuts aim to finance the extension of Trump’s 2017 tax cuts, benefiting corporations and the wealthy while increasing the deficit by $4 trillion, according to the Congressional Budget Office. 

Medicaid cuts will result in reduced services for millions of Americans. 

What is Medicaid? A partnership between the federal government and states that provides medical insurance and services for children in low-income households, seniors, people with disabilities, and others with limited income.  Medicaid is paid directly to care providers, not to individuals. 

Each state sets its guidelines for eligibility and services, but states receiving federal Medicaid funds must provide services for:

• Children with disabilities or illnesses needing long-term care,
• Teens living on their own,
• Low-income individuals in need of pregnancy support,.
• Seniors in need of nursing home and hospice care,,
• Adults with disabilities requiring at-home or residential care,
• Other services required by federal law

Why Medicaid Matters 

In FY 2024, 8% of the federal budget was allocated to Medicaid, which serves around 80 million people, or one in five Americans.

• About 1 million people in nursing homes rely on Medicaid. Funding cuts could lead to the closure of facilities, resulting in staff layoffs, homelessness for non-Medicaid residents, business losses for suppliers, and increased unemployment.  
• Approximately 27 million children rely on Medicaid for essential medical care, long-term support, and disability services. Many of these critical services could disappear, exposing children to preventable diseases and leaving families of disabled children to navigate challenges without necessary support.
• Pregnancy care for low-income individuals will be reduced, resulting in more avoidable infant deaths and maternal deaths from pregnancy complications.
• Hospitals and doctors won’t be reimbursed for services to low-income individuals who can’t pay, shifting costs to other patients and insurers. This will lead to higher expenses for all seeking care, and if costs can’t be absorbed, hospitals may limit services, cut staff, or close, especially in rural areas.

States will have to find funds to continue Medicaid services, leading to higher state income and/or sales taxes.

WHAT CAN YOU DO? 

The final budget has not been approved yet, but we must act quickly. We still have time to notify Congress of our concerns and stop the impending Medicaid crisis!

Contact your senators and representatives at (202) 224-3121 to support Medicaid services and oppose funding cuts. Share how losing nursing homes impacts families and communities, and how people with disabilities depend on Medicaid for essentials like wheelchairs, job training, and transportation.