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Most likely Medicaid cuts could hit rural areas the hardest

  • House Republicans are proposing federal health care cuts that could reduce Medicaid funding by $880 billion over 10 years, potentially impacting the 72 million Americans enrolled in the program which provides coverage for preventative care, maternal health, chronic disease treatment, and long-term care.
  • These proposed cuts, aiming to reduce the federal budget by $2 trillion and fund $4.5 trillion in tax cuts, are driven by a need to reduce a $2 trillion annual debt to gross domestic product, though the GDP is anticipated to double over the next decade.
  • The proposed changes may cause Minnesota to lose up to $1.6 billion annually, and could disproportionately affect rural areas, where working-age adults are more likely to be covered by Medicaid and where hospitals and healthcare providers heavily rely on Medicaid, with Essentia Health in Duluth reporting 15%-18% of its monthly patients use Medicaid.
  • Republican U.S. Rep. David Valadao, representing a California district where 68% of residents are enrolled in Medicaid, voiced his opposition, stating he has "heard from countless constituents who tell me the only way they can afford health care is through programs like Medicaid" and that he "will not support a final reconciliation bill that risks leaving them behind."
  • Potential outcomes of these cuts include states being unable to cover resulting shortfalls, leading to increased premium costs, loss of coverage, closures or staff reductions at healthcare facilities, job losses , and deepened disparities between white people and Black people and urban and rural residents, according to experts like Jennifer Driver and Brandy Harrell.
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Real Vail broke the news in on Thursday, March 27, 2025.
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