Congress and the Trump Administration are considering drastic cuts to the Medicaid program that could affect more than 1.4 million Minnesotans and the financial viability of medical practices and hospitals across the state. Physicians need to fight back now to protect patients’ access to Medicaid. Here’s how.
On February 25, the U.S. House of Representatives adopted a budget resolution (i.e., budget plan) that includes a $880 billion target for cuts to programs under the jurisdiction of the House Energy and Commerce Committee. This includes Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP). It is now up to the Committee to propose how those cuts should be made.
While much is uncertain, two things are clear. First, President Trump has consistently said he will not sign a budget that includes cuts to Medicare. Second, if Medicare cuts are off the table, the Congressional Budget Office (CBO) has indicated that the House Energy and Commerce Committee cannot make $880 billion in cuts without cuts to Medicaid.
Meanwhile, the U.S. Senate has adopted its own budget resolution that directs Senate committees, including committees with oversight over Medicaid, to identify at least $4 billion in spending cuts. Although the current Senate target is lower, the two chambers need to agree on a final target for which Medicaid remains at particular risk.
The time to act is now!
House and Senate leadership are working to reconcile their budget targets by mid-April. House leadership has indicated its goal to get a final budget signed by the president by the end of May.
Medicaid is a joint federal-state program that provides health insurance and long-term care coverage to low-income individuals. Minnesota’s version of Medicaid is called Medical Assistance (MA).
To be eligible for MA, individuals must meet income requirements that vary by age, pregnancy status, and family size. People enrolled in MA pay no premium for coverage and no cost sharing for a comprehensive list of health services.
In 2023, roughly one-in-four Minnesotans were enrolled in MA (i.e., 24.4%). MA covers 41% of Minnesota children and 30% of births in the state. Its impact is even greater in Black and Indigenous communities – MA covers 80% of births of Black babies and 90% of births of Indigenous babies in Minnesota.
MA plays a pivotal role in minimizing Minnesota’s uninsured rate, which sits at an all-time low of 3.8%. Minnesotans covered by public programs, like MA, are half as likely to delay or forgo care due to cost compared to uninsured Minnesotans (i.e., 26% and 53%, respectively).
Moreover, Minnesota spends more than 60% of MA funds on services and support for the elderly and people with disabilities. MA, not Medicare, is the primary source of coverage for people who need long-term care services, like nursing homes, in Minnesota.
Vulnerable Minnesotans in every corner of the state depend on MA. While counties in metropolitan areas have relatively high counts of MA enrollees, counties in greater Minnesota have relatively high percentages of their populations enrolled in MA.
However, because MA is a joint federal-state program, its future impact is limited by federal funding and guidelines.
There are various ways in which Congress might pursue cuts to Medicaid, including, but not limited to, the list below. All these mechanisms serve to shift costs to states and reduce coverage for low-income individuals (i.e., through decreases in eligibility, decreases in covered services, and/or increases in premiums and cost-sharing).