Proposed federal legislation includes the largest cuts to the Medicaid program in its 60-year history, aiming to reduce federal spending by at least $715 billion over the next 10 years. These cuts are part of a budget reconciliation bill.
These proposed changes threaten essential health coverage and care for millions across the nation, including over one million residents in Wisconsin who rely on the state’s Medicaid program. Nationwide, estimates suggest up to 13.7 million people could lose health coverage through cuts to Medicaid and the Affordable Care Act (ACA).
Wisconsin’s Medicaid program covers 18% of Wisconsinites, including one in three children and 60% of people residing in nursing homes. The cuts pose a particular threat to people with disabilities and children.
A key harmful proposal is a per-person funding cap for Medicaid, which is deemed especially detrimental for Elderly, Blind, or Disabled (EBD) members due to their significantly higher care costs. Over a ten-year period, Wisconsin could face a loss of up to $16.8 billion in federal funding under this proposal, with the majority impacting spending on EBD members. The consequences for vulnerable populations and the state are severe and direct:
- Individuals with disabilities could lose critical support services like job coaches,
transportation, and day programs, which are vital for independent living and employment. - Businesses employing people with disabilities could be forced to close.
- BadgerCare Plus, vital for children’s care, could face reduced funding.
- Cuts could lead to fewer healthcare providers accepting Medicaid, reducing access to
care, especially in rural areas, and potentially leading to clinic and rural hospital
closures. - Provisions like work requirements, cost-sharing, and more frequent eligibility checks
act as significant barriers to care. Work requirements alone could put up to 52,000
people in Wisconsin at high risk of losing eligibility. - Seniors in nursing homes could be disproportionately impacted.
- Individuals recovering from mental illness and substance use could lose access to services that serve as a “springboard to employment”.
Facing billions in federal funding loss, Wisconsin would be in a “deeply harmful dilemma,” forced to choose between cutting eligibility, health care benefits, or slashing reimbursement rates for healthcare providers.
The legislation also proposes drastic cuts to the Supplemental Nutrition Assistance Program (SNAP), potentially requiring Wisconsin to pay for part of the cost, which could force the state to cut benefits or reduce eligibility for FoodShare. Wisconsin could owe a minimum of $68 million starting in 2028 for food benefit costs.
Ultimately, these proposed cuts will likely lead to more medical debt, less financial security, and more people delaying necessary care, driving up healthcare costs for everyone. The state would face an impossible choice between dramatically raising taxes, cutting other vital services, or making deep cuts to Medicaid itself.
