House Republicans Consider Medicaid Cuts, Impacting Millions’ Coverage

Potential Medicaid Funding Cuts Spark Concerns

House Republicans, led by Georgia Representative Austin Scott, are considering significant changes to the federal funding structure for Medicaid expansion. This proposal could result in a loss of health insurance for tens of thousands of Americans.

During an interview with Fox Business on April 22, Scott discussed the potential shifts in Medicaid funding.

“When the Dems expanded Medicaid under the Affordable Care Act, they made that percentage match 90-10, so the federal government is paying 90% of the Medicaid expansion,” Scott explained. “What we have talked about is moving that 90% level of the expansion back to the more traditional levels of 50% to approximately 80%.”

The Affordable Care Act (ACA), commonly referred to as Obamacare, encouraged states to expand Medicaid through a federal cost-share of up to 90%. This policy change enabled millions of uninsured adults to gain health coverage.

Despite this incentive, ten states with Republican-majority legislatures, including pivotal states like Georgia and Wisconsin, have not adopted Medicaid expansion. Notably, seven of these states are within the top 20 for highest uninsured rates.

Additionally, twelve states, such as Arizona and North Carolina, have legislation that would terminate Medicaid expansion if the federal funding rate decreases below 90%, aligning with Scott’s proposal.

Research from the Center for American Progress, shared initially with The Hill, suggests that these funding cuts could lead to over 34,000 additional deaths annually.

Currently, approximately 72 million Americans rely on Medicaid for their health insurance needs.

Scott’s funding proposal is being evaluated as part of the forthcoming reconciliation bill, which House Republicans are formulating. The bill seeks to reduce federal expenditures by $1.5 trillion, partially to support tax cut extensions for affluent Americans.

Economists caution that achieving such budget reductions would be challenging without substantial cuts to Medicaid and other essential safety net programs.

Massachusetts Representative Katherine Clark, the Deputy Democratic Leader in the House, criticized the proposal, labeling it as another Republican effort to reduce healthcare accessibility.

“The GOP is getting ready to take away your health care,” Clark expressed on X. “This is just overturning the ACA by another name and for one purpose: to hand more money to billionaires.”