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Medicaid Defense

03.06.2025 - Medicaid Cuts Continue to Loom as Congress Advances Budget Debate

01.31.2025 - Congress Threatens Healthcare Access in 2025

Medicaid is facing significant threats as Congress considers proposals that would drastically cut funding for this vital program that serves 3 million Pennsylvanians. These cuts would slash the safety net supporting older adults, children, people with disabilities, pregnant women, and low wage workers, all in the name of achieving savings to pay for tax cuts for wealthy Americans. 

PHLP is committed to keeping stakeholders informed about critical developments and action steps. Please check back to this page frequently, as we will share information about threats to Medicaid and how we can collectively advocate for the protection of this essential program!

While any cuts to Medicaid will harm Pennsylvanians, particularly vulnerable to cuts are our seniors and people with disabilities, who account for nearly 80% of Pennsylvania's Medicaid spending.  

In our state, Medicaid is known as “Medical Assistance,” and it plays a crucial role in providing essential healthcare coverage and services. Without Medicaid, Pennsylvanians wouldn’t be able to manage, treat, or prevent health issues. Medicaid is vital to keeping our communities strong and putting more money in families’ wallets, thereby strengthening our local economies and driving economic growth.  Here’s why Medicaid is vital for Pennsylvania:

  • Supporting Parents & Families: Medicaid pays for 35% of all births in Pennsylvania and ensures access to necessary prenatal, maternity, and postpartum care.
     

  • Caring for Children: More than 1.25 million children in Pennsylvania are on Medicaid, including children with special healthcare needs, children from low-income families, and those in foster care.
     

  • Paying for Long-Term Care: Medicaid is the main payer for in-home services like nursing care that allow seniors and people with disabilities to stay in their homes and communities. Medicaid also pays for nearly two-thirds of all nursing home care in Pennsylvania.
     

  • Promoting Mental Health: Medicaid is the single largest payer for mental health and substance use disorder treatment.
     

  • Strengthening Local Economies: Medicaid funds hospitals, health centers, and other healthcare systems that provide essential care while creating jobs and supporting local economies.

Leaked documents from Congress indicate a plan to save $2.3 trillion by implementing harmful changes to Medicaid, significantly cutting federal funding for the program and imposing new restrictions on getting and keeping Medicaid coverage. PHLP firmly opposes these actions, all of which will only serve to take Medicaid away from people and make it harder to access vital health coverage and services. Key proposals currently on the table include: 

  • Per Capita Caps: This funding model would give states a fixed amount of federal funding for each enrolled Medicaid recipient, rather than matching funds based on actual expenses. If a state's Medicaid costs exceed this cap, it would have to cover the additional costs entirely through its state budget.
     
  • Elimination of Enhanced Federal Matching Funds: In exchange for Pennsylvania expanding Medicaid in accordance with the Affordable Care Act, the federal government agreed to cover a higher percentage of Pennsylvania's Medicaid costs  for people who became eligible due to the expansion: where usually the feds cover just around half of Pennsylvania’s Medicaid costs, they pay 90% of Medicaid costs for low-income adults who became eligible for Medicaid through the ACA expansion. Proposed cuts would remove this enhanced funding, leaving states to pick up the costs (or, cut programs to save state dollars.)
     
  • Medicaid Work Requirements: These requirements would mandate that people maintain employment to qualify for Medicaid coverage.  But in general, people on Medicaid who can work are already working. Moreover, past experiences show that work requirements do not lead to increased employment rates; instead, they result in many people losing essential health coverage and services, either because they are not able to work or because they struggle to wade through the paperwork and reporting processes that accompany work requirements. Particularly at risk are people with a disability or chronic health condition that prevents them from working; caregivers who are not able to work due to their responsibilities; low-wage workers with unpredictable work schedules or seasonal employment; and people who live in remote areas with limited job opportunities and/or lack of access to transportation.
     

PHLP firmly opposes any actions that will take Medicaid away from people or make it harder for people to get coverage and access care. Medicaid is vitally important, not only for the health of Pennsylvanians but also for our state’s economy. It allows Pennsylvanians to access essential health services; gives necessary financial support for hospitals and health care providers serving our communities; reduces medical debt for consumers and uncompensated care for providers; and helps low-wage workers remain employed, contributing to job creation.

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