In his recent state of the state address, Georgia Governor Brian Kemp seemed to overlook a crucial topic: health care. This is quite a change from last year when he proudly showcased his health policies, which aimed to provide better coverage and support in a state with one of the highest rates of uninsured adults.
Last year, Kemp highlighted initiatives like a state-run marketplace for affordable health insurance plans and a Medicaid work requirement. These efforts were meant to lower Georgia’s uninsured rate and improve access, especially in rural areas. However, recent cuts to federal funding threaten these advancements, leaving many Georgians worried about their health care access.
Healthcare leaders in Georgia are sounding the alarm. According to a recent report from Manatt Health, hospitals could face a staggering $626 million loss in federal funding over the next seven years due to these cuts. In 2025, Georgia had about 1 million uninsured adults, and this number could spike by 20-30% in 2026, especially with the end of enhanced federal subsidies.
This situation is particularly precarious for rural hospitals, which depend heavily on government reimbursements for treating uninsured patients. The One Big Beautiful Bill, a new federal law, significantly alters how these reimbursements work, complicating the financial landscape for hospitals across the state.
Interestingly, while Kemps’s administration boasts about receiving $218 million to improve hospital infrastructure and telehealth services, healthcare providers argue that this won’t cover the losses they face due to changing laws. In fact, only 15% of that funding can go to payments for care, insufficient to mitigate the financial hit from reimbursement cuts.
The Affordable Care Act has also hit a rough patch. Enrollment for health insurance plans offering federal subsidies fell by about 190,000 people in December. Many Georgians may soon face higher premiums, and advocates worry that this will lead to even fewer people having coverage. Georgia is expected to lose around $14 million in enrollment fees due to this drop.
Amid these changes, Medicaid is under the spotlight. Cuts in federal funding for Medicaid are set to begin in 2027. This program is funded jointly by state and federal governments, with the federal share covering about 66% of costs in Georgia. The concern is that these cuts may eventually affect vulnerable populations, including the elderly and children, if state lawmakers don’t take action to bridge the funding gap.
In contrast, other states are already planning strategies to manage their Medicaid funding amid these federal changes. New federal requirements starting in 2027 will also impose work reporting for adults on Medicaid, similar to what Georgia has been testing for a while. Unfortunately, this has been fraught with challenges that have left many low-income citizens without coverage.
The road ahead for Georgia’s healthcare system seems rocky. As elections approach, Democrats are rallying around health care, hoping to spotlight these urgent issues. With rising enrollment and funding challenges, the future of health care in Georgia remains uncertain.
For a deeper look into the effects of federal policy on state healthcare, you can check out the report from KFF and the analysis from the Georgia Health Initiative.
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Affordable Care Act,Brian Kemp,Georgia,Georgia Pathways,Georgia Pathways to Coverage,Governing,Legislature,Medicaid,politics,Rural Hospital Tax Credit
