Wednesday, March 12, 2025

Sid Salter: On Capitol Hill, Medicaid Under Scrutiny for Cuts

On March 7, the Democratic Minority of the bipartisan and congressionally created Joint Economic Committee—one of two economic advisory committees established in 1946—released a report detailing their concerns about where the Republican Majority has signaled they might go to accomplish theiroverall tax cut goals.

The U.S. House passed a budget resolution in late February that would require between $1.5 trillion and $2 trillion in federal spending cuts to lay the groundwork for the Trump Administration and the House Majority to extend the 2017 tax cuts with proposed additional tax breaks for affluent taxpayers.

The report carefully notes that the budget resolution “does not include specific policies” and that it is too early to “know how the budget reconciliation legislation will be written,” but makes the case that the Medicaid program is “on a menu of potential cuts” laid out by the House Budget Committee.

Specifically, House Democrats believe that a Medicaid cut of $2.3 trillion or about a third of projected Medicaid spending. Medicaid is a joint federal-state program that covers medical costs for the poor, the blind, people with disabilities, the elderly and children.

Overall, the JEC-Minority report argues that the GOP plan could see 25 million Americans lose their health care coverage, including 10 million children and as many as 1-in-5 senior citizens in nursing homes. The report is an attempt to illustrate what a one-third cut to Medicaid would look like.

The JEC report claims Mississippi covers more than 640,000 Mississippians or over 25% of the state’s total population. A congressional cut of one-third of federal Medicaid funding across all segments could result in 120,000 rural residents and 110,000 children losing their health coverage as part of a total of over 200,000 people who would be left without Medicaid coverage. As many as 1-in-4 senior citizens could lose their nursing home care.

For context in Mississippi’s contiguous states, Alabama’s Medicaid program covers more than 1 million people or over 20 % of the state’s total population. A one-third Medicaid cut would generate more than 330,000 Alabamians cut off from their health care coverage and 1-in-5 would lose nursing home coverage. Arkansas’s program covers 780,000 people or over 25% of the state’s population with 1-in-5 losing their nursing home coverage.

Louisiana’s program covers over 1.6 million people or over 30% of the state’s population. A one-third Medicaid cut would generate over 530,000 cuts from the Medicaid rolls and nearly 1-in-4 seniors would lose their nursing home care. Tennessee’s Medicaid program covers almost 1.5 million people or about 20% of the state’s population. Nearly 1-in-5 seniors would lose their nursing home coverage.

Despite some of the political rhetoric in recent years, Mississippi’s Medicaid program has operated on responsible footing compared to other states – which is one reason President Trump chose Mississippian Drew Snyder to manage the program at the national level.

Before the 2024 election, there was hope that Medicaid expansion might finally be considered in Mississippi, as it was in neighboring Arkansas and Louisiana.

In 2010, the Patient Protection and Affordable Care Act or “Obamacare” was enacted by Congress – then the biggest public policy overhaul and coverage expansion of public healthcare since the 1965 enactment of the Medicare and Medicaid programs. Today, Mississippi remains one of 10 states that has not adopted some form of Medicaid expansion to draw down additional federal funds to pay for health care for the working poor.

The 10 states include Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin and Wyoming. The failed 2024 Mississippi Medicaid expansion effort would have expanded Medicaid coverage to about 200,000 people who earned up to 138% of the federal poverty level, or $20,120 annually for one person.

But in 2025, Mississippi lawmakers have not felt they had sufficient guidance from Washington on the future of the existing Medicaid program and little enthusiasm for helping facilitate expansion of the program.

To the contrary, the prevailing political winds have made maintaining Mississippi’s existing Medicaid program against cuts look like a more reasonable goal.

Sid Salter is a syndicated columnist. Contact him at sidsalter@sidsalter.com.

9 comments:

Anonymous said...

Getting thin can be uncomfortable at times. But, don't believe the cuts referred to will be as deep as the Demonratz are trying to make it sound like.

Kingfish said...

From WSJ editorial on Feb. 26: No surprise, Medicaid spending is out-pacing even Social Security and Medicare. Federal Medicaid outlays have increased 207% since 2008 and 51% since 2019. Medicaid spending as a share of federal outlays rose to 10% from 7% between 2007 and 2023, while the share of Social Security and Medicare remained stable.

***
The press claims Republicans want to gut Medicaid. That’s false. They’re not even proposing a cut. Medicaid outlays are on track to increase by $2.4 trillion through 2035 under the Congressional Budget Office baseline projections. So shaving $880 billion from that baseline would still amount to a $1.5 trillion increase in Medicaid spending. Republicans should long ago have fixed this baseline tyranny that automatically builds in new spending each year, but they’ve lacked the nerve.

To hit the $880 billion target, Republicans would merely need to slow Medicaid spending growth to about 2% annually. Mind you, this follows the Biden blowout when federal Medicaid spending has grown about 9% a year. One reason is Democratic-run states have figured out how to scam Medicaid to finance their other spending priorities.


Growing it 10% a year is simply unsustainable.

Anonymous said...

Sign on to Medicaid; watch the state contribution zoom!

Anonymous said...

The word “unsustainable” has no meaning at all to liar grifter Democrats that do not care one bit about the unfunded liabilities and debt being forced on to future generations. It would be like a person with a no limit credit card living beyond his means and never paying his bills - then when he dies his heirs are obligated to pay it back. Grifter Democrats just do not give a ____.

Toldja said...

Grab your nuts and get ready for the cuts to farmers, healthcare, public safety, shipbuilding, renewable energy.

Grab your pieces and get ready for price increases on food, gas, cars, homes, borrowing and education.

You wanted it: you got it. Have a nice day!

Anonymous said...

I found this analysis to provide some additional insights regarding Medicaid. Seems to involve a convoluted "reimbursement" process ensuring every state (except Alaska) gets overpaid with Federal $.

https://issuesinsights.com/2025/03/07/dems-fight-to-protect-a-600-bil-medicaid-tax-scam-that-joe-biden-tried-to-kill/

Anonymous said...

Good luck finding yours.

Anonymous said...

Stopping benefits to ineligible people constitutes cutting, De'monte?

Anonymous said...

Conservatives. Lets clean up the system.

Democrats: They are going to cancel Medicaid!!!



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