Washington, D.C. — Congressional Republicans in both chambers have passed a budget resolution that directs the House Committee on Energy and Commerce to cut at least $880 billion in costs through 2034. To help reach the $880 billion in cuts, Republican leaders on the committee have proposed lowering the federal medical assistance percentage (FMAP) for the Medicaid expansion population—adults with incomes up to 138 percent of the federal poverty level who became eligible for Medicaid through the Affordable Care Act (ACA). A new Center for American Progress article finds that if FMAP is decreased for the expansion population, more than 3.6 million people across 12 states could lose that coverage.
Medicaid is the largest source of federal funding for states and often the largest expenditure in a state’s budget. If Congress lowers the expansion FMAP, states that expanded Medicaid under the ACA would face immense financial strain if they tried to make up the difference. This new article looks carefully at the 12 states that could end their Medicaid expansion due to trigger laws: Arizona, Arkansas, Illinois, Indiana, Montana, New Hampshire, North Carolina, Utah, and Virginia are all states where lawmakers are registered to end expansion if the FMAP drops below 90 percent. New Mexico, Iowa, and Idaho require legislative review and reconsideration of expansion if FMAP is reduced.
“If Congress cuts the federal matching rate for the Medicaid expansion population, millions of Americans could lose their health insurance,” said Natasha Murphy, director of Health Policy at CAP and author of the column. “This move would make millions more vulnerable to worse health outcomes, more medical debt, disrupted care, and our hospital systems would be further strained.”
Read the column: “How Federal Funding Cuts Could Unravel Medicaid Expansion in 12 States” by Natasha Murphy
For more information or to speak with an expert, please contact Sarah Nadeau at [email protected].