President’s Budget Doubles Down on Massive Medicaid Cuts

Despite campaign promises to leave Medicaid untouched, President Trump’s proposed budget doubles down on harmful cuts included in the House Republican healthcare bill passed in May. On top of the $839 billion in cuts included in the American Health Care Act (AHCA), the budget calls for a 12 percent further reduction in states’ Medicaid grants over 10 years.

All told, the proposed policy would cut Medicaid by as much as $1.3 trillion over the next decade. By 2026, that means Maryland and other states will get 45 percent less in federal funds to help ensure low-income residents are able to get health care. Cuts of this magnitude would increase the number of uninsured Marylanders and shift significant costs to the state.

Untenable Cost Burden for Maryland

The AHCA alone would cap Medicaid reimbursement for states, and would cut $14 billion from Maryland’s budget over 10 years. The president’s budget proposal takes these efforts a step further by reducing the growth rate for per-capita caps and allowing states to reduce services in ways that are currently prohibited.

Loss of Coverage

Loss of funding would force Maryland to reduce coverage and benefits to the thousands of Marylanders who rely Medicaid and upset the health insurance market and larger economy. The policy and funding changes in the AHCA would cost 23 million Americans their health insurance, according to estimates from the nonpartisan Congressional Budget Office. In Maryland, this would mean 265,100 people losing coverage, including 148,600 Medicaid recipients. Another 10,300 elderly Marylanders who already struggle to afford the basics would lose Medicaid. While these people would still be covered by Medicare, they will still be faced with unaffordable out-of-pocket costs.

By further reducing the amount of federal support for Medicaid over time, President Trump’s budget would almost certainly cause more people to lose their health coverage.

Maryland has recognized Medicaid as an effective service that protects the health of low-income families and strengthens our economy. Federal funding is a critical resource to reduce pressure on the state’s already strained budget. For example, Governor Hogan’s response to the opioid crisis relies on Medicaid, the largest payer of mental health and substance use disorder care in the country. The proposed federal budget would be a step backwards in these efforts. At the same time the president’s budget proposes massive tax cuts to the wealthy and corporations. These cuts would cost trillions of dollars and benefit the very few, jeopardizing the health and well-being of seniors, people with disabilities, children and adults who rely on Medicaid.