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Congressional Medicaid cuts would heavily impact many WA families

Reducing funding by one-third would leave 210,000 Washington kids would lose health insurance

The leader of the Washington state House of Representatives said the quiet part out loud this week: lawmakers should brace for a special session if Congress slashes funding for Medicaid, the health care program for lower-income Americans.

ā€œWeā€™re on a plan to finish our work by Sine Die. If they just decimate Medicaid, thereā€™s no way to plan for that,ā€ House Speaker Laurie Jinkins, D-Tacoma, told reporters last week. Such a move, she said, would put Washington and the rest of the country ā€œin completely uncharted territory.ā€

The Republican-led U.S. House passed a budget last weekĀ that assumes an extension of the 2017 tax cuts andĀ $880 billionĀ in reduced spending from an array of programs that include Medicaid and Medicare.

If the federal government pares back its Medicaid spending, it could force states to pick up the tab.Ā Rural hospitals would be affected tooĀ as they rely heavily on Medicaid and Medicare dollars.

What Medicaid cuts could look like in Washington

In Washington, MedicaidĀ is known as Apple Health. The programĀ coversĀ about 1.9 million people in the state, around 20% of the overall population.According to a reportĀ congressional Democrats released on Thursday, if the Republican budget cuts a third of federal Medicaid funding across all populations andĀ geographies, Washington could see:

  • 61,000 rural residents lose their health coverage
  • 210,000 children lose their health insurance
  • Nearly 1 in 5 seniors lose their nursing home care
  • More than 600,000 people in total cut off from their health insurance

Cutting the program by a third could be a heavy lift to get through Congress, but some Republican lawmakers have floated it as an option to help pay for tax cuts.

What Washington gets in federal Medicaid support

For Washington, backfilling the potential cuts could amount to several billion dollars a year depending on what the state would want to cover and could afford to pay for.

Washington received more than $12.5 billion in federal Medicaid funding in the 2023 fiscal year,Ā according to U.S. Sen. Maria Cantwell, D-Washington. Total spending in the state operating budget wasĀ on track to be aroundĀ $37 billion this fiscal year.

U.S. Sen. Patty Murray, D-Washington, with whom Jinkins spoke recently, last weekĀ outlined several potential consequences of Medicaid cuts.

For example, if the federal government stops providing matching funds to states like Washington that expanded Medicaid under the Affordable Care Act, it would force Washington to spend $2.8 billion to maintain coverage for about 647,000 people.

With so much uncertainty, Jinkins said no state can plan for what might occur.

ā€œThe way that weā€™re thinking about this is: What do we need to do to balance our budget, and know thereā€™s the potential that there are Medicaid implications to that?ā€ she said.

As to adjourning on schedule, she said, ā€œI really donā€™t know where weā€™ll be should the federal cuts happen.ā€

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This article has been reposted with permission from the Washington State Standard, part ofĀ States Newsroom, the nationā€™s largest state-focused nonprofit news organization and committed to shining ā€œa light on policy and politics in all 50 states.ā€Ā Click hereĀ to support nonprofit, freely distributed, independent local journalism.Ā Read this articleĀ and othersĀ online at Washington State Standard.

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About the Author

Jerry Cornfield / Washington State Standard

Jerry Cornfield joined the Standard after 20 years covering Olympia statehouse news for The Everett Herald. Earlier in his career, he worked for daily and weekly papers in Santa Barbara, California. Washington State Standard is part of States Newsroom, the nationā€™s largest state-focused nonprofit news organization.