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This is the 1st of a 5 Part Series on Dismantling the Democrat Atom Bomb about the Big Beautiful Bill and its “devastating” impact on healthcare.
Part 1: The Medicaid Paradox – Growth, Costs, and Misleading "Cuts"
The Big Beautiful Bill’s Medicaid cuts are a gross distortion of what is actually happening and ignores the larger problem in our healthcare system that has been increasing the costs and reducing access to care for, working class, middle class, self-employed, and small businesses.
Physician and other healthcare burnout worsens the situation.
A closer look reveals that these cuts represent such a small fraction of overall healthcare spending and that the system's fundamental flaws — particularly over-regulation, lack of competition, and escalating costs — are the primary drivers of reduced access and physician burnout.
Medicaid's Expanding Footprint in Connecticut and the Proposed Cuts
Medicaid enrollment in Connecticut surged by 61% between 2012 and 2023, reaching over a million enrollees across various Husky plans. The proposed federal budget cuts, estimated at $100 billion annually, represent only about 2% of the nation's over $5 trillion annual healthcare expenditure. This "cut" is framed against a backdrop of Medicaid spending that is still 51% higher than in 2019. A significant concern for hospitals is a reduction in the provider tax from 6% to 3.5%, which currently helps subsidize Medicaid reimbursements.
Husky Breakdown:
Husky A - for low income children, caregivers and pregnant women 43% (660,000 enrollees)
Husky B -for children who’s family income is too high for Medicaid (21,800 enrollees)
Husky C - for seniors (84,700* enrollees )
Husky D - adults 19-64 without dependent children (increasing from 132,000 in 2012 to 397,000 in 2024)
(SEE - Many more people are on Medicaid in CT than a decade ago, July 11, 2025 available here [ [link removed] ]
Medicaid's Financial Footprint on Connecticut:
Connecticut is expected to spend $11.6 billion dollars or almost 45% of the state budget on Medicaid with the Federal Government paying 59% of the cost. Medicaid is a huge cost to Connecticut (almost 20% of all tax revenue collected, including income tax, sales tax and business, in Connecticut goes to pay for Medicaid) and Federal taxpayers (including Connecticut federal taxpayers) covering 59% of the Medicaid costs.
The Medicaid "Cuts" in Context: The notion of "massive Medicaid cuts" is often misleading. The current government is spending 51% more on Medicaid today than in 2019. The proposed $100 billion annual reduction, while significant, represents only about 2% of the total $5 trillion spent on healthcare. A key element of these proposed changes is a reduction in the provider tax paid by individuals and insurance companies from 6% to 3.5%. This tax, currently used to subsidize Medicaid and boost hospital reimbursements, is a hidden cost passed on to those with private insurance. The true impact on hospitals may stem more from this provider tax adjustment than from headline-grabbing "cuts."
Why the Panic for a 2% reduction in healthcare spending? Medicaid patients account for a disproportionately higher percentage of hospitalizations (25% of discharges while covering 20% of the population). This disparity is likely due to the lack of out-of-pocket expenses for Medicaid recipients, which can encourage emergency department use over preventative or primary care. The proposed adjustments are primarily aimed at the non-working adult Husky D population, with data suggesting that a large majority of Husky D recipients are already working and would not be at risk of losing coverage. The debate often overlooks the larger problem of healthcare affordability for the working population.
Stay Tuned for - Part 2: The Unjust Burden – How the Current System Fails Working Americans

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