Why Republicans’ Plans to Cut Medicaid Could Backfire: A Closer Look

While President Trump focuses on the executive branch, congressional Republicans are trying to expand his 2017 tax cuts, which mainly benefit the wealthiest Americans.

However, there’s a tricky math problem. Trump has promised not to cut Medicare and Social Security. This leaves Medicaid, the program that provides health coverage to over 70 million Americans, as a target for potential cuts. Just recently, Trump stated that Medicaid wouldn’t be affected either.

Last Tuesday, House Republicans took steps towards possible Medicaid cuts by passing a budget resolution that could result in up to $880 billion in cuts over the next decade. They now face the challenge of identifying specific cuts and determining who will be affected — patients, healthcare providers, and even state governments.

Cutting Medicaid is not an easy task. Many organizations, from the AARP to the American Hospital Association, support the program. There’s also public backing for it. Even Steve Bannon, a former Trump ally, cautioned against drastic cuts, noting that many supporters of Trump are on Medicaid and “can’t take a meat ax to it.”

The federal government spends about $600 billion a year on Medicaid, with states receiving at least 50% of costs covered. Wealthier states like New York and California get around this percentage, while poorer states like West Virginia and Mississippi may receive over 70%.

If the funding is significantly cut, state governments could face major financial difficulties. They would have to figure out how to manage their Medicaid programs with less money. This could include cutting coverage for some people, reducing payments to doctors, or even raising state taxes to make up for the lost federal support.