The Effects of Cutting Medicaid

Grandparent with children in a garden.

By Donna Raleigh

This article reflects on the importance of Medicaid to so many of our families and our neighbors. Most of us know seniors, disabled, and children receiving Medicaid benefits. We also know that Medicaid is likely to be cut in the U.S. Congress’s “big, beautiful” budget bill. People we know and love will be hurt.

Here are some things we know about the budget bill right now.

  • It purports to cut approximately $1.5 to $2.0 trillion from the budget. It would be difficult, if not impossible, to do this without slashing Medicaid.
  • If rules are followed, the budget bill will be passed under “reconciliation” which means a normal majority is all that is needed and no filibuster allowed. As you know, the House and Senate are both controlled by Republicans who tend to favor these cuts.
  • Other cuts may include reducing SNAP benefits by 25%. Current SNAP benefits are based on $2/meal/person. The proposed cut reduces the amount to $1.67/meal/person. 
  • The bill also includes tax cuts which will favor the top 1% of income earners. 

Here is what we know about Medicaid in Wisconsin.

  • Medicaid includes Badger Care (low income health care), nursing home and home healthcare for those who qualify (seniors and disabled), and care for children and parents in low income status.
  • Of the $11 billion spent on Medicaid in Wisconsin annually, $6.6 billion comes from the federal government. 
  • One fifth (20%) of Wisconsin’s population benefits from Medicaid.
  • Medicaid is the largest payer for rural and low-income urban hospitals as well as for mental health care.
  • If Medicaid gets cut at the federal level, it is predicted that Wisconsin will have two choices: increase state spending by approximately $1 billion or remove people from the program. 

What might be the effects of slashing Medicaid?

  • People will go hungry.
  • Mental health care may degrade.
  • Rural hospitals may be forced to close leaving health care deserts.
  • Nursing homes may be forced to reduce staff or close. 
  • Seniors and disabled may not be able to live in their own spaces.

Do you predict that Wisconsin’s current lawmakers would raise Medicaid spending? If not, here are some things you can do:

  • Tell the stories of how Medicaid is helping us and our neighbors.
  • Contact your U.S. House Representative and your U.S. Senators, preferably by phone, to demand no cuts to Medicaid funding.
  • Contact your state representatives to demand they accept the Medicaid expansion that Wisconsin can receive.
  • Write letters to your social media sites and to newspapers expressing the importance of keeping Medicaid. Tell the stories!
  • Attend the Wednesday afternoon protests at the Federal Building in Eau Claire.
  • Share the Medicaid info with your family and friends. Be bold in speaking out!

As one person said at the “Hands Off Medicaid” Town Hall held earlier this year in Eau Claire by Citizens’ Action of Wisconsin, “If Medicaid gets cuts, people will die!”

Information Sources: 

Paul Krugman’s interview with Bobby Krogan of the Center for American Progress: 

https://paulkrugman.substack.com/p/an-interview-with-bobby-kogan?publication_id=277517&post_id=162743062&isFreemail=true&r=em3tb&triedRedirect=true

The handout entitled “Hands Off Medicaid” which can be obtained from Northwest Citizens’ Action Coop Director, Jeremy Gragert, [email protected]