Hospitals urge Congress to protect Medicaid from steep cuts

With the House of Representatives approving a budget plan that cuts $2 trillion in spending, hospitals are pushing Congress to preserve the Medicaid program.

Hospitals are urging Congress to preserve funding for the Medicaid program. The House approved a budget resolution to cut federal spending, stirring concerns that Medicaid could see significant reductions.

The House narrowly passed the spending plan Tuesday which slashes spending, stirring more fears of significant cuts to the Medicaid program. Medicaid provides coverage for nearly 80 million Americans and also directs critical funding to hospitals.

The House passed its budget resolution, but the spending plan is hardly finalized. Both the House and Senate will need to approve a final budget, and President Trump has pushed for cuts in federal spending to help pay for tax cuts.

Bruce Siegel, MD, president and CEO of America’s Essential Hospitals, said the group was “extremely disappointed that the U.S. House of Representatives passed the budget resolution.” The organization represents safety-net hospitals that serve a high percentage of hospitals relying on Medicaid.

“This budget resolution will open the door to devastating Medicaid cuts that will impact millions of Americans, especially those middle-to-low-income working Americans in both rural and urban communities, who rely on Medicaid to access critical health care services,” Seigel said in a statement.

The budget plan “will slash the Medicaid program and threaten to discontinue life-saving safety net services in many communities,” he added.

Hospitals and health systems have said that if Medicaid is cut and fewer have coverage, providers will end up providing more uncompensated care.

Chip Kahn, president and CEO of the Federation of American Hospitals, has urged lawmakers to avoid cuts to Medicaid. After the House vote, he issued a statement saying he’s heard that some Republicans won’t go for cuts in Medicaid.

“Key Republican lawmakers – recognizing that so many constituents rely on Medicaid for critical care – made it clear that their vote today was based on an understanding the final reconciliation bill would not include devastating Medicaid cuts or changes,” Kahn said in a statement. “That is gratifying – it’s important that these members came to the same conclusion the President did: Medicaid cuts are off the table.”

Kahn said it’s up to lawmakers to follow through and ensure that there won’t be cuts to the program.

Hospital leaders have been dreading cuts in Medicaid for months. Those concerns were amplified when the House GOP introduced a budget framework calling for the House Energy and Commerce to cut $880 billion over the next decade. The committee oversees health care spending, including Medicaid.

Before the House vote, Rick Pollack, president and CEO of the American Hospital Association, issued a statement asking lawmakers to ensure appropriate funding for Medicaid.

“We urge you to consider the implications of hinging the budget reconciliation bill’s fate on removing health care access for millions of our nation's patients. These are hardworking families, children, seniors, veterans, and disabled individuals who rely on essential health care services,” Pollack said.

Ahead of the vote, the Catholic Health Association also spoke out to urge lawmakers to refrain from big cuts to Medicaid. Sr. Mary Haddad, president and CEO, implored Congress “to reject these harmful cuts and support policies protecting our most vulnerable.”

“These cuts would disproportionately harm small towns and rural communities, where Medicaid is often the primary source of care,” she added.

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