More than 3 million Americans may face the loss of health coverage due to potential funding cuts to the Medicaid expansion, which could lead to automatic eliminations in various states if President-elect Donald Trump takes action.
Reducing federal expenditures is among Trump’s numerous objectives for his upcoming term in the White House. While he hasn’t clearly detailed his intentions regarding Medicaid, there are concerns that he might attempt to reduce its funding.
Medicaid offers almost no-cost health care coverage to millions of the most disadvantaged children and adults in the U.S., whereas Medicare grants older Americans and individuals with disabilities access to health insurance. The program established during the Obama administration provides health insurance options for millions of Americans who are ineligible for government-supported coverage and lack employer-provided insurance.
The current administration may opt against enforcing new Medicaid regulations that aim to extend coverage to millions of low-income individuals who lack health insurance from their employers.
Should this happen, at least nine states would swiftly face a loss of insurance, as reported by The KFF, previously known as the Kaiser Family Foundation, a nonprofit dedicated to healthcare research, along with the Georgetown University Center for Children and Families.
According to the group, the initiative led to forty states broadening their health insurance coverage by expanding Medicaid programs to include a larger population. The federal government has committed to covering 90% of the expenses associated with the expanded population in exchange.
However, numerous states have laws in place that automatically activate if federal funding falls below a certain level, resulting in a reduction of Medicaid expansions, according to the reports from the groups.
The states include Arizona, Arkansas, Illinois, Indiana, Montana, New Hampshire, North Carolina, Utah, and Virginia, as reported by KFF.
In the majority of the nine states, the activation point occurs when federal funding dips below the 90% mark; however, Arizona sets its threshold even lower, at below 80%.
Experts have projected that in the states with specific laws in place, approximately 3.1 million to 3.7 million individuals would quickly find themselves without coverage.
According to Renuka Tipirneni, an associate professor at the University of Michigan’s School of Public Health, if federal funding is reduced by Congress, Medicaid expansion could face significant challenges in all participating states, even those lacking trigger laws. This situation would compel state legislatures to find ways to compensate for the funding shortfall.
The choice to maintain or reverse the expansion “would hinge on the political landscape within the state,” Tipirneni stated.
In the recent election, it was noted that six out of the nine states with specific laws supported Trump, according to KFF.
During his initial term, Trump made efforts to dismantle the Affordable Care Act, a legislation introduced during the Obama Administration that broadened Medicaid and improved healthcare access for those who were previously uninsured.
Trump has changed his stance, announcing that he will retain the ACA, commonly referred to as Obamacare, while also implementing modifications. His plans for Medicaid remain even more vague.
He selected Mehmet Oz, a well-known heart surgeon who transitioned into a talk show host and lifestyle expert, as his candidate to lead the Centers for Medicare and Medicaid Services.
