Federal Budget Talks Put Medicaid in the Hot Seat

As the White House and Congressional leaders are buckling down to find a solution to our nation’s spending and debt crisis, House Republicans continue to call for sizable spending cuts while opposing any and all tax increases.

The House-approved budget proposal by Rep. Paul Ryan (R-WI) called for a significant overhaul of Medicare, turning it into a voucher program and consequently reducing U.S. spending by $6 trillion over the next ten years. Republicans have since eased off this highly unpopular initiative.

However, now the focus is on Medicaid.

The House Republican budget proposes to turn Medicaid into a block grant program, meaning states would receive a capped amount of money annually, rather than the current process of receiving matching funds for services provided. This rationing of Medicaid funds would ultimately result in fewer services for those who need them most.

What does this mean for California family planning services? The federal government currently pays our state 90 cents of every $1 dollar it spends on family planning supplies and services, allowing our Medicaid program to cover more women in need. Many states have established Medicaid Family Planning Waivers, much like our Family PACT. FPACT is a Medicaid expansion program to cover uninsured women seeking family planning care. Turning Medicaid into a block grant program would end this 90/10 federal match rate as we know it, as states would only receive a fixed amount of funding – covering fewer supplies and services, and as a result encouraging states to create more stringent eligibility requirements.

According to a recent study by the Kaiser Family Foundation and the Urban Institute, changes to Medicaid under The Ryan Plan would cause between 31 million and 44 million people to lose Medicaid coverage nationally, adding to the ranks of the uninsured.  In addition:

• Medicaid enrollment would decline by nearly 60% from current projected levels
• Federal spending for Medicaid would decline by $1.4 trillion from 2012 to 2021
• Hospitals, community health centers and other health care providers serving low-income residents would be disproportionately affected
• Medicaid payments to hospitals would decrease by as much as 38% in 2021, equal to $84 billion in lost funds that year.

What can you do? Stand up for Medicaid! It’s imperative we let our legislators know that we oppose attempts to undermine this vital program. Contact your Senators and Representatives today and urge them to stand up for Medicaid and the patients you serve. Call the Capitol Switchboard at 202-224-3121 to be connected with your representatives.