Medicaid is central to the health care system’s response to the current public health and economic crises. Millions more people will likely enroll in Medicaid in the coming months because of the recession, a large majority of whom would otherwise become uninsured.
The growing need for Medicaid coverage and services coincides with an unprecedented state budget crisis. Based on current economic forecasts, state budget shortfalls will total about $650 billion over the next several years, even larger than the Great Recession.
During past budget crises, states restricted Medicaid eligibility. Including for seniors, people with disabilities, and pregnant women; made it harder for eligible people to get and stay covered; eliminated or cut key benefits; and cut payments to physicians, hospitals, nursing homes, and other providers.
Under current circumstances, such cuts would not only worsen low-income people’s access to care, health, and financial security, but also would undermine the response to COVID-19.
To protect health coverage, policymakers need to substantially increase the federal government’s share of total Medicaid costs.
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