A recent study by the Urban Institute and the Robert Wood Johnson Foundation reveals that proposed Medicaid funding cuts could have severe consequences for American healthcare. If the bill approved by the House passes, it could lead to a staggering $321 billion drop in hospital funding, an $81 billion reduction for doctors, and a $191 billion decrease in spending on prescription drugs from 2025 to 2034.
Over the next decade, hospitals in the U.S. are also projected to face a $63 billion rise in uncompensated care—services rendered without payment. This means that caregivers will be forced to absorb costs for patients who cannot pay.
In Missouri alone, around 210,000 individuals could lose their Medicaid coverage by 2034, according to an analysis from the Congressional Budget Office (CBO).
Katherine Hempstead, a senior policy adviser at the Robert Wood Johnson Foundation, noted, “The Medicaid cuts being considered would be the largest in the program’s history and could wreak havoc on healthcare access.” She further emphasized that the implications extend beyond those directly covered by Medicaid, potentially affecting entire communities and local economies.
Fredric Blavin, a senior fellow at the Urban Institute, adds that the analysis could help policymakers understand how cuts to Medicaid and ACA marketplaces might impact healthcare coverage and the financial health of local providers across states.
The financial forecast isn’t bright. Healthcare spending in the United States could decline by $797 billion over the next ten years, particularly affecting states like California, Florida, Texas, and New York. Here, spending could decrease by more than one-third of the total cuts. Nine additional states (including Arizona and Georgia) could face declines exceeding $20 billion.
The want for a drastic shift raises concerns about the future of healthcare access. Experts warn that, while many adults with Medicaid expansion already work or are in school, imposing work requirements could lead to even more losses in coverage—potentially affecting over 30 million adults aged 19 to 55.
This situation highlights a critical juncture in American healthcare. Historical context shows that such significant funding cuts can destabilize health outcomes. For instance, previous Medicaid cuts in the past have led to increased emergency room visits and negative health impacts on vulnerable populations.
The current conversation around Medicaid cuts is not just about numbers; it’s about lives. As discussions continue, the focus remains on ensuring that access to care is maintained for those who need it most.