The Problem with Cutting Medicaid
Breaking down the recent news involving Medicaid's future.
On February 25, 2025, the US House of Representatives passed a budget resolution that, if adopted in the Senate, and then used as a framework to write and pass legislation in both bodies of Congress, could cut Medicaid to as many as 20 million people.
Here’s what this means:
Medicaid definition
According to the US Department of Health and Human Services, “Medicaid is a joint federal and state program that helps cover medical costs for some people with limited income and resources.”
In other words, it is government funded health insurance for those who otherwise would not be able to afford private health insurance.
Why health insurance is important
According to Healthcare.Gov, health insurance is important because:
Health insurance covers essential health benefits critical to maintaining your health and treating illness and accidents
Health insurance protects you from unexpected, high medical costs.
You pay less for covered in-network health care, even before you meet your deductible.
You get free preventive care, like vaccines, screenings, and some check-ups, even before you meet your deductible.
What will happen if Medicaid gets cut?
Up to 20 million Americans will no longer be covered under Medicaid, and will become uninsured.
The problem with being uninsured
According to KFF.org, an independent health policy organization, “uninsured adults are more likely to forgo needed care than their insured counterparts…high uninsured rates contribute to rural hospital closures and greater financial challenges for rural hospitals, leaving individuals living in rural areas at an even greater disadvantage to accessing care…when they are hospitalized, uninsured people receive fewer diagnostic and therapeutic services and also have higher mortality rates than those with insurance.”
According to the National Bureau of Economic Research, 15,600 deaths between 2014 and 2017 could have been prevented if all states expanded Medicaid.
A summary of the Commonwealth Fund’s 2024 Biennial Health Insurance Survey from AJMC found that “57% of underinsured adults avoided necessary medical care due to cost, 2 in 5 reported worsened health as a result, and nearly 30% are burdened with medical debt—half owing $2000 or more.”
Can’t people dumped from Medicaid just get private health insurance or insurance from an employer?
Fortunately, some of them do, but many don’t. CBS News reported that only 28% of the people dumped from Medicaid in 2023 obtained private health insurance within a year of losing coverage.
Why was this even passed in the first place, then?
Per Newsweek, “The resolution includes around $4.5 trillion in tax cuts over the next decade, extending the 2017 cuts set to expire at the end of the year, while also including the president's campaign proposals such as eliminating taxes on tips, overtime and Social Security. These measures would extend lower corporate tax rates and provide additional breaks for high-income earners.”
The resolution does NOT mention cutting Medicaid, BUT The New York Times reported that the math of the budget resolution makes a cut to medicaid “almost unavoidable.”
Speaker of the House Mike Johnson claims that “Medicaid is hugely problematic because it has a lot of fraud, waste, and abuse.”
However, he has not provided any evidence to the public that backs his claim up.
And besides, are we really going to cut healthcare for low income Americans just because there are a few awful people that are trying to scam the system? That doesn’t seem right.
What are Republicans proposing as an alternative to Medicaid?
Republicans claim that they will increase accessibility to private insurance by allowing people to buy health insurance across state lines. Republicans also believe that the practice will improve competition and lower costs.
However, the nonpartisan research and policy institute Center on Budget and Policy Priorities believes that “Republican Health Coverage Proposals Would Increase Number of Uninsured, Raise People’s Costs.”
Conclusion
Cuts to Medicaid will have devastating health and financial impacts to many low-income Americans in the short term, and Republicans are taking a huge gamble that private insurance companies will provide affordable rates to Americans in the future.
Right now, most private insurance companies don’t seem to be doing this very well, as the US Government Accountability Office reported last December that “Health Insurance Costs Are Increasing As Markets Become More Concentrated with Fewer Insurance Companies.”
And what about the thousands of elderly who have spent all their money on nursing homes and still aren’t dead? Medicaid covers this too. I an an expert in sp being money on nursing homes. Contact me if you want more information.