Federal Medicaid cuts would cost 13,000 Kansans their health care coverage

Kansas News Service

Federal lawmakers are considering cutting billions of dollars from Medicaid funding. Experts say that would lead to an increase in hospital closures and uninsured rates in Kansas.

Thousands of Kansans could lose health insurance if Congress moves forward with cuts to Medicaid, the health insurance program for low income and disabled people.

Updated projections from Manatt Health estimate 13,000 Kansans would lose Medicaid coverage and the state could lose up to $3.77 billion in funding for the program over the next 10 years if federal cuts are approved.

The proposed cuts are part of the Trump Administration's "One Big Beautiful Bill," which is a budget reconciliation process aimed at lowering taxes and national spending.

David Jordan, president and CEO at United Methodist Health Ministry Fund in Kansas, said Congress is rushing through legislation that would take health care from the state's children, seniors and people with disabilities.

"This is a dire situation for Kansas and our health care landscape," Jordan said. "We know that Medicaid plays a big role in both the health of rural Kansans and in the financial health of our rural hospitals."

The bill narrowly passed the U.S. House of Representatives last month. It's now in the Senate, and President Donald Trump asked lawmakers to pass it by July 4.

That's despite polls showing most Americans oppose the cuts because of fears they or their families could lose health care coverage.

What the numbers mean

The projections are part of a state-by-state analysis conducted by Manatt Health, a company that offers consulting and legal services focused on health care. REACH Healthcare Foundation and the United Methodist Health Ministry Fund paid for the Kansas analysis.

The projections show over the next 10 years the state would lose $2.29 billion of federal funding and an additional $1.48 billion in state funding for a total of $3.77 billion cuts to Medicaid.

And Kansas could see more losses than the analysis predicts. Manatt Health wasn't able to model every provision of the bill and its impact on Kansas because of data limitations.

The reduction in federal funding is mainly lobbed at states that have expanded Medicaid. Although Kansas is one of only a few states that have not expanded the program, experts believe the state will still see major losses.

Jordan said there are multiple provisions in the bill that would make it harder for people to enroll and stay enrolled in Medicaid, which he said would result in thousands of Kansans losing health care coverage.

Proponents argue the bill will ensure Medicaid dollars are being spent on people who really need it. But Jordan said it's already difficult enough to access Medicaid as it is, and people need insurance to be able to contribute to the economy.

"I think if you talk to real Kansans, they're frustrated by the hoops that they have to jump through already," He said. "This bill just makes it tougher for them to access the help that they need to raise their family."

Changes to things like eligibility and the enrollment period for the federal Affordable Care Act Marketplace, where consumers can shop for health insurance, could lead to more Kansans losing health care coverage, according to Manatt Health's analysis.

Additionally, the bill blocks states from raising provider taxes, which many hospitals use to subsidize their share of Medicaid.

April Holman, executive director for the Alliance for a Healthy Kansas, a group that lobbies for Medicaid expansion, said many rural hospitals in the state rely on Medicaid funding. She said lower reimbursements and fewer insured Kansans would be bad news for rural hospitals in the state that are already struggling.

"If they see more uncompensated care from more people who are not insured," Holman said, "It could mean the end to those hospitals. So I think that it's very, very precarious right now."

What national polling shows

The plan has received wide-ranging opposition. Prominent Republican legislators from the region, Kansas Sen. Jerry Moran and Missouri Sen. Josh Hawley, have both spoken against the cuts.

Meanwhile, a new poll by KFF, a health policy research and news organization, shows that the majority of the U.S. public also opposes the cuts. The poll showed 54% of Americans are concerned federal cuts to Medicaid will make it harder for their families to access health care. And 71% of Americans are worried the proposed cuts will have negative impacts on hospitals and nursing homes.

The poll found Democrats and independents are more worried about cuts to Medicaid than Republicans. But 43% of Republicans said they are concerned the cuts would harm providers in their communities.

Holman said a lot of Kansans, regardless of their political affiliation, are worried that they'll lose health care coverage or won't be able to stay home to care for their loved ones.

"The consumers that we talk to really don't care about the politics of this issue," Holman said. "They are concerned about surviving."

For more information visit KCUR.org.