Medicaid - Big Ugly Mess

Medicaid Cuts at a Glance

Exploring the human cost of Trump’s proposed Medicaid cuts.

Staff Report

According to The Louisiana Illuminator, Congress has passed Trump’s tax and spending bill, which includes over $1 trillion in cuts to Medicaid — the health insurance program for low-income Americans. The cuts aim to offset tax breaks that largely benefit the wealthy.

According to the Congressional Budget Office, the bill could leave nearly 12 million more Americans uninsured by 2034. Louisiana, where nearly half the population relied on Medicaid in 2023, could lose up to $35 billion in federal support over the next decade. Mississippi, which never expanded Medicaid, could lose $5 billion.

The bill also imposes new work and reporting requirements for Medicaid recipients and restricts funding tools states use to boost hospital payments. Critics say these changes ignore the challenges of rural life, where jobs, transportation, and internet access are often limited.

National researchers estimate that up to 132,000 Louisianans who gained health insurance under expansion could lose it under work rules.

State Medicaid funding is also at risk. For years, both Mississippi and Louisiana have relied on revenue generated through a financing tool — known as a provider tax — to draw down more federal dollars and boost Medicaid reimbursements to providers. But congressional Republicans hope to limit states’ ability to collect those taxes.

A couple of weeks ago, the Louisiana Hospital Association signed a statement calling the package of Medicaid cuts before Congress “historic in their devastation.”

In communities across the State, residents already face high poverty rates, poor infrastructure, and few job opportunities. “There’s nowhere to go,” said Rosie Brown of the East Carroll Community Action Agency.

Health workers warn the bill could reverse years of progress made through Medicaid expansion and community health centers. “Many of our patients are one medical crisis away from bankruptcy,” said Dr. Brent Smith of Delta Health System.

Republican supporters of work requirements, including Louisiana representative and U.S. House Speaker Mike Johnson, argue they will encourage people to find jobs and ensure Medicaid goes to people who need it most. But according to KFF, a majority of Louisiana adults with Medicaid — 69% — already work.

Local leaders and residents are calling on Congress to consider the real-world impact. “It’s like there’s no common sense with them,” said one resident. “They do stuff for the rich, but what about us?”

Medicaid cuts will disproportionately harm Black Americans due to their higher reliance on the program for healthcare coverage, stemming from systemic inequities. Black Americans make up a larger proportion of Medicaid enrollees( 20%)  (than their representation in the general population (14%), meaning they would be more severely impacted by cuts. This could lead to increased medical debt, worsened health outcomes, and reduced access to necessary care.