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Ferguson’s “Morally Bankrupt” Cuts to Medicaid
By Rep. Dan Newhouse
In July, Congress passed an unprecedented Working Families Tax Cut, delivering tax relief for families and small businesses while making reforms to Medicaid to ensure the program’s long-term sustainability. Two months prior, Washington Governor Bob Ferguson signed the biennial state budget which included over $780 million in cuts to Medicaid over the next two years. In fact, the Governor held a performative press conference in Kennewick calling my position on H.R. 1 “morally bankrupt”, even though his signature on the state budget reduced Medicaid spending over the next two years.
The nonpartisan Office of Program Research (OPR) in Olympia has provided analysis about the cuts made to both the federal and state matching funds for Medicaid in Washington state as a result of Ferguson’s budget. According to OPR, the new state budget slashed $446 million in federal Medicaid funds, and another $336.5 million in state matched funds. These cuts will directly impact services like postpartum coverage, the Children’s Long-Term Impatient Program, and hospital operational costs.
The new state budget law also implements new taxes on hospitals over the next two years, with $120 million in taxes starting next year, and an additional $229 million taking effect in 2027.
While these cuts were passed predominantly under the radar in Olympia, House and Senate Republicans in Congress established common-sense reforms that strengthen Medicaid and its ability to continue providing services to qualified recipients. While we reformed the program to ensure services are going to those who truly need them, Medicaid spending by the federal government will continue to rise over the next ten years from $646 billion in fiscal year 2025 to $823 billion by fiscal year 2034. The goal here was not to cut funding for the program but guarantee its integrity and solvency for future recipients.
Unlike the state budget, we also accounted for the needs of rural hospitals by establishing a Rural Hospital Fund which will administer $50 billion over the next five years to serve rural institutions who are in dire need of resources. I have extended my support for this new fund a step further with direct requests to Dr. Mehmet Oz, the Administrator for the Centers for Medicare and Medicaid, to ensure blue states like Washington receive the funds needed to protect rural hospitals serving communities like those in Central Washington.
This new state budget illustrates the reality about future Medicaid spending in our state; Democrats in Olympia delivered a product to Governor Ferguson that slashes Medicaid services and opted to blame Congress’ reforms to the program for political coverage.
I said throughout this entire process that I would vote to protect Medicaid for those who truly need it. While Washington’s state budget hurts recipients and providers, my colleagues and I passed legislation that protects the most vulnerable populations and the rural hospitals we rely on in our region. I will continue working to ensure qualifying individuals in need receive the essential services provided by Medicaid well into the future. |
