Proposed Medicaid Cuts Could Jeopardize Health of Millions

CHC: Creating Healthier Communities is deeply concerned about proposed Medicaid cuts that could jeopardize the health of millions and destabilize the healthcare system as a whole. Right now, the U.S. Congress is considering drastic reductions to Medicaid—cuts that would strip lifesaving care from some of the most vulnerable Americans.

These cuts don’t just impact individuals—they threaten entire health networks, local economies, and public health. CHC stands firmly against these proposals and urges action to protect this vital lifeline. If Medicaid were to be significantly reduced or dismantled, individuals and whole industries would be affected. These implications include:

Medicaid Recipients (79+ million people)

• Children – About 40% of U.S. children rely on Medicaid for healthcare.
• Pregnant Women & New Mothers – Medicaid covers 41% of all births in the U.S. and provides postpartum care.
• Seniors & People with Disabilities – About 63% of people in nursing homes depend on Medicaid for long-term care. More than 40% of adults (18-64) living with disabilities are covered by Medicaid.
• Low-Income Families & Workers – Essential workers, small business employees, and gig workers depend on Medicaid for access to healthcare. Most (94%) adults under 65 who receive Medicaid (not including those on disability) work full or part-time. For adults on Medicaid who do not work, the largest cited barrier is caregiving obligations.
• People with Chronic Illnesses – Many individuals with conditions like diabetes, heart disease, chronic mental health conditions and cancer need Medicaid for ongoing treatment.
• People Experiencing Homelessness – Individuals who depend on Medicaid’s role in addressing housing-related services will face greater identifying affordable living arrangements.

Healthcare Systems & Hospitals

• Hospitals, especially rural and safety-net hospitals, could lose billions in Medicaid reimbursements, pushing many toward closure. Uncompensated care is a greater threat to systems in lower-income communities.
• Doctors & Nurses treating Medicaid patients could see reduced payments, making it harder to sustain care in underserved areas. Hospitals absorb most of the approximately $900 in additional costs from each uninsured individual.
• Payers and Privately-Insured Individuals: A reduction in Medicaid would increase the number of uninsured individuals, leading to more uncompensated hospital care and driving up costs for everyone.
• Mental Health & Substance Use Treatment Centers rely heavily on Medicaid funding to provide critical services.

Small Business Owners & Employers

• Small business owners depend on Medicaid for their own coverage and for employees who may not have access to employer-sponsored plans. The majority of Medicaid enrollees work full or part-time. Many Medicaid adults are employed by small organizations that have fewer than 50 employees and are not required to offer employer-sponsored health insurance.
• Without Medicaid, workforce health declines, leading to absenteeism and lower productivity.

State & Local Governments

• States would face massive budget gaps since Medicaid is a federal-state partnership. The share amount varies by state. Public health programs, like vaccinations and maternal health services, could be drastically cut.

The Economy at Large

• Medicaid supports millions of healthcare jobs, and cuts would lead to widespread layoffs.
• Increased medical debt and bankruptcies could cripple the economy.

In short, Medicaid cuts wouldn’t just affect low-income individuals—they would create a ripple effect across the entire healthcare system, small businesses, and state economies.

CHC will continue to rally communities, businesses and nonprofits around this issue. Sign up for regular updates on this and other issues affecting the health of communities.

Ways to Take Action

You can take action today. Contact your members of Congress. A phone call, email or letter can help change the course of this discussion. If you’re unable to reach your members of Congress by phone immediately, do not get discouraged. Apps and services such as 5Calls, which helps you build a script and make calls to all of your members of Congress, can help guide you. Make your concerns heard and help preserve this essential service for Americans.