Proposed Medicaid cuts could devastate Grays Harbor

As of 2023, 28.5%, nearly 20,000 of Grays Harbor County's residents, were using federal Medicaid benefits, the seventh highest percentage in Washington state.

Many if not all of those residents could lose their healthcare benefits powered by Apple Health, which is free or low-cost health insurance coverage primarily paid for by Medicaid, if President Donald J. Trump's "One Big Beautiful Bill Act" is passed by Congress and signed into law.

According to the Washington state Treasurer Mike Pellicciotti, the percentage of Grays Harbor County adult residents who could be affected is much higher. Pellicciotti also said that most of the federal dollars the state receives from the federal government goes to fund Apple Health.

"We get about $27.4 billion a year from the federal government, the overwhelming majority of that goes to pay for Apple Health services, up to 90%. An impact to any amount of money of reducing Medicaid services would have a huge impact," Pellicciotti said. "Grays Harbor County, for example, the adult Medicaid coverage rates are 37%, so more than one out of three folks in Grays Harbor are receiving Apple Health care. That's why I went to (Washington) D.C. to oppose Congress' attempt to use Medicaid dollars, Apple Health dollars from our state, and convert those funds to pay for an extension of Congress's tax cut plan, which of course disproportionately benefits millionaires and billionaires who will receive trillions in tax relief."

According to a May 15 Medicare Rights Center article, "The House Energy and Commerce Committee, the committee with jurisdiction over Medicaid, has approved massive cuts to Medicaid that the Congressional Budget Office projects will lead to 10.3 million people losing Medicaid coverage and 7.6 to 8.6 million people going uninsured. Among those losing coverage would be millions of people dually eligible for Medicare who rely on Medicaid for benefits and help paying Medicare costs. The Medicaid changes include adding burdensome work reporting requirements on some populations and requiring them to demonstrate they are working before they can access any care."

Also, the House Committee on Agriculture has approved a massive cut to the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. In federal fiscal year 2024, 888,300 Washington residents used SNAP benefits. In 2022, 15,955 Grays Harbor County residents used the program.

Medicaid has been linked with improved physical health and reductions in deaths from diseases like diabetes and cancer, as well as lower prescription drug costs. Pellicciotti explained that Medicaid/Apple Health funds don't just cover individual patient costs for healthcare, but also pays for the medical service providers and facilities.

"Those dollars are spent on healthcare services. It's the injection of dollars into healthcare services in places like Grays Harbor for nurses and doctors and rural medical clinics. That's where the money goes. It's not that the individuals get a check," Pellicciotti said. "Apple Health covers the cost of those services and the people and the services being provided in the local community. That's where the (Medicaid dollars are) going."

According to Pellicciotti, the proposed tax cuts result in foreign investments rather than investment in local communities.

"You're sucking out those domestic investments, those local community investments, American dollars and then sending them to the feds so they can give them to millionaires and billionaires in new tax cuts," Pellicciotti said. "The reality is these millionaires and billionaires are not in our local communities and they're simply investing that money in their investment portfolio. An increasing percentage of that investment portfolio is being invested now in foreign nations and investments. Essentially the money is being extracted out of local communities like Aberdeen (where) we're providing important healthcare services locally."

Published reports have indicated that the federal government is looking to cut as much as $880 million from Medicaid, which covers 71 million low-income Americans. In Washington state, Apple Health, which was born out of the Affordable Care Act, covers primary care, emergency visits, maternity services, pediatric care, dental services, vision care, prescription medications and more.

Late Sunday night, the House Budget Committee voted 17-16 to advance the One Big Beautiful Bill Act. The House Rules Committee gets the bill next. President Trump was on Capitol Hill on Tuesday to lobby Republican lawmakers for support.

Although President Trump has publicly expressed his support for Medicaid, according to Politico, the latest Congressional Budget Office analysis released Tuesday found that 7.6 million people would lose their Medicaid coverage if the House of Representatives' proposal became law.

It remains to be seen what the final bill will contain and exactly how many Grays Harbor County residents will be affected.