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State medical associations plead to Congress: Don’t slash Medicaid

Key Takeaways

  • Proposed Medicaid cuts could lead to loss of coverage and benefits for vulnerable populations, worsening health conditions, and increased financial burdens on states and providers.
  • A per capita cap on Medicaid funding could decouple funding from actual healthcare costs, placing states and providers in a precarious situation during health crises and economic downturns.
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Doctors groups from 50 states join in missive to lawmakers.

doctor medicaid concept: © onephoto - stock.adobe.com

© onephoto - stock.adobe.com

Cutting Medicaid is going to have devastating consequences for the health the nation, according to the medical associations of the 50 states.

Grouped as the Coalition of State Medical Associations, the 50 organizations sent a joint letter to members of Congress warning of dire effects if lawmakers follow through with cuts to Medicaid.

The House of Representatives’ Energy & Commerce Committee set an $880 billion spending reduction target in the House Budget Resolution. GOP legislators have said they want to target waste, fraud and abuse in the system. Democrats have repeatedly accused Republicans of planning to reduce health coverage for people in need to pay for tax cuts for the wealthiest Americans.

The medical societies noted there will be a medical and financial cost, they warned.

“For decades, Medicaid has been the safety net for our most vulnerable patients — children, pregnant women, seniors, the disabled, veterans and low-income working families,” the letter said. “If these cuts are enacted millions of our Medicaid patients will lose their coverage and we expect all Medicaid patients to lose some of their existing benefits and access to essential health care services. Once our patients lose coverage, their health conditions will worsen and the financial burden will shift to the states, physicians, emergency rooms, hospitals, and all other patients.”

Specific concerns

The states have enacted innovations and efficiencies that reduce costs and improve patient outcomes in Medicaid programs. Those will go by the wayside if the federal government makes the cuts. The state associations outlined concerns about specific proposals.

  • A per capita cap on funding would decouple the level of funding from the actual cost of health care for the highest-risk patients.

“Such a fundamental change in Medicaid funding would place states, providers and patients in a precarious situation when we confront unexpected health care crises, economic recessions, public health crises, and natural disasters,” the letter said. “The financial risk for Medicaid patients cannot be placed solely on providers and states.”

  • The proposed cuts to the federal matching fund, known as FMAP, are a direct cost-shift to the states, and are significant for the vast majority of states. This will force states to reduce coverage and benefits, the coalition said.
  • There are proposed cuts to the provider and managed care organization (MCO) levies that states use to sustain their Medicaid programs. The state funding sources are approved by Congress and the programs involve partnerships with hospitals, skilled nursing facilities and the MCOs.

Caring for those in need

“As physicians, our obligation is to care for those who need us — sick children, the disabled, seniors in nursing homes, veterans and those with chronic conditions, mental health and other special needs,” the letter said. “As state medical associations that have advanced innovations, we are committed to working with you to find solutions to protect and improve Medicaid for generations to come. But we urge you to reject Medicaid funding cuts that threaten patient care, coverage, and the viability of our entire health care system.”

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