Advocacy Issue: Medicaid

The Medicaid program is the largest single source of health care coverage in the United States, covering nearly half of all children, many low-income elderly and disabled individuals, and working adults in low-wage jobs. Congress is currently considering policy options that could collectively reduce federal spending for the Medicaid program by trillions of dollars over the next 10 years — including limits on states’ ability to generate funding for the state share of the costs.

AHA Position

AHA urges Congress to reject reductions to the Medicaid program that would not only strip access to health care from some of the most vulnerable populations but also destabilize hospitals and health systems, leading to a loss of services that would impact patients and communities nationwide.

What's at Stake: Medicaid covers the people you know. The majority of U.S. residents with Medicaid coverage are children. 39% of children are covered by Medicaid. Medicaid protects access to care for rural communities. Among Medicaid beneficiaries, 47% of children and 18% of adults live in rural communities. Medicaid supports access to essential obstetrics care, behavioral health services, and primary care. 41% of births in the U.S. are covered by Medicaid. Medicaid provides access to care for low-income seniors. 13.7 million seniors in the U.S. are dually eligible for Medicare and Medicaid. Fact: Medicaid chronically underpays for services. Without supplemental payments, Medicaid fee-for-services payments nationally paid 58 cents for every dollar that hospitals spend caring for Medicaid patients, and Medicaid managed care organizations paid 65 cents. Protect Access to Care: The AHA urges Congress to reject reductions to the Medicaid program that would threaten health care access for patients.

Protect Access to Care: Reject cuts to the Medicaid program and premium hikes on working families. If Congress cuts Medicaid, hospitals would see significant imparts that vary by policy: Per Capita Caps for All Medicaid Population: 1-Year National Hospital Impact in 2026 -$47.6 billion; 10-Year National Hospital Impact through 2024: -$468.1 billion. Per Capita Caps for Expansion Population: 1-Year National Hospital Impact in 2026 -$18.9 billion; 10-Year National Hospital Impact through 2024: -$199.9 billion. Eliminate Enhanced FMAP for Expansion Population: 1-Year National Hospital Impact in 2026 -$32 billion; 10-Year National Hospital Impact through 2024: -$360.6 billion. Reduce FMAP Statutory Floor to 45%: 1-Year National Hospital Impact in 2026 -$7.3 billion; 10-Year National Hospital Impact through 2024: -$78.4 billion. Limit Provider Taxes to 5%: 1-Year National Hospital Impact in 2026 -$3 billion; 10-Year National Hospital Impact through 2024: -$32.8 billion. If the Enhanced Premium Tax Credits (EPTCs) expire: 2.2 million individuals are at risk of becoming uninsured in 2026; 4 million individuals are facing higher costs due to loss of Marketplace coverage in 2026; $705 average per person increase in annual premiums in 2026; -$28.2 billion reduction in spending on hospitals over 10 years.

Key Resources