House Bill to Cut Medicaid Could Devastate US Healthcare, Says Study
TL/DR –
A study by the Urban Institute and Robert Wood Johnson Foundation predicts that the proposed House bill to dramatically cut Medicaid funding would cause a major decrease in American healthcare spending. Hospitals would experience a loss of $321 billion, physicians would face an $81 billion cut, and spending on prescription drugs would fall by $191 billion from 2025 to 2034. The study also shows that 210,000 people in Missouri could lose coverage by 2034 and warns that between 4.6 and 5.2 million adults living in states that expanded Medicaid would lose coverage under proposed work requirements.
Potential Impact of House-approved Medicaid Funding Cuts
Studies by the Urban Institute and Robert Wood Johnson Foundation suggest that the House-approved bill, which involves significant Medicaid funding cuts, could have a disastrous effect on American healthcare. The report analyses the potential impact of the proposed bill currently under Senate review. (source)
Healthcare Spending Reductions
The research predicts that hospitals could lose $321 billion, doctors may face an $81 billion cut, and prescription drugs spending could see a $191 billion decrement between 2025 and 2034. Uncompensated care, services delivered without reimbursement, could increase by $63 billion. The Congressional Budget Office analysis indicates that around 210,000 people in Missouri could lose coverage by 2034. (source)
Effect on Medicaid and Local Economies
Experts from the Robert Wood Johnson Foundation and the Urban Institute warn of the profound repercussions such drastic alterations to Medicaid financing could have, including further strain on hospitals, restricted care access for entire communities, and destabilization of state and local economies. They stress the need for policymakers and stakeholders to consider the potential adverse effects on healthcare coverage, access, affordability, and the financial vulnerability of certain providers in their state. (source)
Regional Impact of Spending Reductions
The proposed bill could lead to a $797 billion decrease in healthcare spending over the next decade, with more than one third of this decline expected to occur in California, Florida, Texas, and New York. In addition, Arizona, Georgia, Illinois, Indiana, North Carolina, Ohio, Oregon, Pennsylvania, and Washington could see healthcare spending declines exceeding $20 billion. The largest increases in uncompensated care are projected to be in California ($27.5 billion), Texas ($15.9 billion), New York ($13.1 billion), and Florida ($11.7 billion). (source)
Work Requirements and Coverage Loss
According to the Johnson Foundation, between 4.6 and 5.2 million adults in states that expanded Medicaid, including Missouri, could lose Medicaid coverage next year due to work requirements. If these requirements are not explicitly limited to the Medicaid expansion population, this could potentially affect over 30 million adults aged 19 to 55, resulting in considerably higher coverage losses. (source)
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