Washington, DC – Congressional Republicans’ attacks on health care are ripping money out of state budgets — and it’s working Americans who are being forced to pay the price.
Republicans’ historic cuts to Medicaid are forcing states to slash health care spending for working families, new reporting from Axios. Last year, Republicans in Congress betrayed their constituents by voting for the largest cuts to Medicaid in history in order to fund more tax breaks for the ultra-wealthy. According to the report, Republicans’ devastating Medicaid cuts are projected to shrink state budgets by $664 billion over the next decade. Now, states are being forced to cut health care spending, jeopardizing coverage for millions of Americans while health care costs continue to skyrocket.
“Republicans in Congress voted to gut Medicaid so they could shower their billionaire friends with tax breaks at the expense of Americans’ health care,” said Unrig Our Economy Campaign Director Leor Tal. “States are now being forced to make tough budget decisions and working families will pay the price. But for congressional Republicans it was never a tough choice — it’s always billionaires first, working Americans last.”
Axios: States begin living with Medicaid austerity
Key Points:
- Republicans’ massive Medicaid overhaul and rising health costs are forcing state legislatures to begin cutting medical spending for the poor, raise taxes and take other steps to deal with a first-of-its-kind budget squeeze.
- State budgets are due to shrink by $664 billion over the next decade because of the cuts in last year’s GOP budget law, while medical costs are rising and state tax collections are lagging.
- That’s creating a perfect storm for a program that typically accounts for about 30% of a state’s budget each year.
- Idaho legislators this week approved $22 million in cuts to Medicaid disability services.
- Colorado, which faces a $1.5 billion budget shortfall driven largely by Medicaid spending that predates the congressional changes, is debating controversial benefit cuts and lower provider payments.
- Budget austerity will become the new normal with nearly $1 trillion in federal Medicaid cuts and new eligibility and financing rules on the way.
- “This is the start of lots of tough choices around Medicaid policy going forward,” said Robin Rudowitz, director of KFF’s program on Medicaid and the uninsured.
To learn more about the campaign, visit UnrigOurEconomy.com or contact press@unrigoureconomy.com
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About Unrig Our Economy
Unrig Our Economy is a national campaign to fix the rules of our economy to make it work for working people. We know that when the middle class does well, all of us do well — which is why we’re fighting on behalf of working Americans and holding corporations, their wealthy executives, and the politicians who enable them accountable.