Congress Threatens Massive Cuts to Medicaid with Newly Approved Budget Plan

This week, Congress took a major step towards passing a budget that guts federal funding for Medicaid and would transform the Medicaid program as we know it. These actions put the healthcare of more than 70 million Americans – and 3 million Pennsylvanians – at risk.

On April 5th, U.S. Senate Republicans passed an amended budget resolution that was approved by House Republicans five days later. The joint budget resolution creates a blueprint for federal spending, including which funding will be cut and which will be increased. Over the next month, Congress will negotiate and draft legislation using the budget instructions as a framework. House Republican leaders have a goal of presenting a draft budget bill by May 9th and aim to pass a full budget bill by Memorial Day.

While Medicaid is not specifically named in the joint budget resolution, Medicaid is a prime target of spending cuts.  The resolution directs the House Committee on Energy and Commerce to cut $880 billion from the programs it oversees, one of which is Medicaid. Additionally, earlier this year, the House Budget Committee has outlined exactly what it would do to cut Medicaid through the budget process, targeting the program for even steeper cuts than those included in the joint budget resolution. 

Budget experts confirm there is virtually no mathematical scenario where the Energy and Commerce Committee can achieve $880 billion in savings without severely cutting Medicaid. Medicaid is one of the largest programs this Committee oversees. The other big program under its purview is Medicare, which lawmakers have not indicated cutting.  Even though Medicare cuts are not expected, advocates point out that cuts to Medicaid are cuts to Medicare.

Details about the exact threats to Medicaid and other safety net programs will become clearer in the coming month(s) as budget legislation is drafted. Cuts are likely to take the form of Medicaid work requirements and changes to how the federal government shares Medicaid costs with states.  

On April 8th, PHLP and our partners at PHAN and J. Badger Consulting hosted a webinar discussing possible threats to Medicaid and how Medicaid cuts could impact people in Pennsylvania. Access the recording and handouts here.

In the coming months, PHLP will continue monitoring these developments closely and provide updates as we learn more details.  Please subscribe to our newsletter for more information and updates about Pennsylvania Medicaid. 

Why Work Requirements Don't Work

Medicaid work requirements alone will not achieve the spending cuts outlined in the joint budget resolution.  And the only way work requirements will result in any savings for the federal government is if Medicaid is taken away from people because they fail to meet work requirements or they fail to file the reporting paperwork. Medicaid helps people stay healthy so they can work! More than 90 percent of Pennsylvanians on Medicaid who are of working age are either employed or would be exempt from work requirements. This includes students, caregivers, or people with serious health conditions or disabilities that keep them from working.

Pennsylvanians on Medicaid could lose their coverage even if they are employed or exempt from work requirements.  This is because work requirements come with burdensome documentation requirements. People will lose coverage because of challenges reporting compliance or exemptions, not because they are ineligble.  That’s exactly what happened in Arkansas and Georgia, the only two states in the U.S. to have tried Medicaid work requirements. 

Not only will work requirements take health coverage from people, but they will also increase Pennsylvania’s Medicaid costs and put more pressure on our state budget. In one of the two states that attempted work requirements, implementing the new requirements and procedurs resulted in such an administrative cost and burden to the state that it was ultimately abandoned. Our colleagues at Community Legal Services have created a helpful publication with more information about the harmful impact of Medicaid work requirements.
 

Sharing Medicaid Stories is Critical!

If you haven't already shared your Medicaid story, now is the time to take action! Sharing how Medicaid helps you or your loved ones helps people better understand what is at stake if Medicaid cuts are passed. Many people are unfamiliar with Medicaid, and personal stories can help connect them to the issue so that they want to help protect Medicaid. 

When sharing your story, think about things like how Medicaid helps you stay employed, avoid medical bills and medical debt, or get the care you need. Mention if it helps you access prescriptions, doctor visits, mammograms and other cancer screenings, mental health or SUD treatment,  medical equipment like oxygen and wheelchairs, private duty nursing, or in-home personal care aides to help with things like dressing, eating, and bathing. Here are ways to share your story: 

• Record your video story on Pennsylvania Health Access Network’s Soapboxx.
• Share your Medicaid story with members of Congress:
  • Call 1-866-426-2631 to be connected to your U.S. Representative(s) and/or Senator(s)
  • Call, visit, or email your Congressperson’s local office. You can identify your Congress Member using your home address using this tool. Note that Congress will begin a two-week recess on April 14th. During those two weeks, U.S. Senators and Representatives will be in their home district offices.