KFF analyzes impact of potential Medicaid cuts
By HME News Staff
Updated 9:43 AM CDT, Tue March 25, 2025
SAN FRANCISCO – If the federal government were to cut $880 billion from Medicaid over 10 years, it would represent 29% of state Medicaid spending per resident, 6% of state taxes per resident and 19% of education spending per pupil, according to a new analysis from KFF. The House of Representatives has passed a budget resolution instructing the Energy & Commerce Committee to reduce the federal deficit by at least $880 billion over 10 years and, although the budget resolution does not mention the program, Medicaid comprises $8.2 trillion out of the $8.6 trillion in mandatory spending that E&C must use to come up with spending reductions (assuming Medicare cuts are off the table), KFF says. As a result, major cuts to Medicaid are the only way to meet the House’s budget resolution requiring $880 billion (or more) in spending reductions, it says. To put the proposed federal cuts into further perspective, KFF says they are equivalent to all Medicaid spending on 3 million or 18% of Medicaid enrollees eligible because they are 65 and older or have a disability, 14 million or 38% of adult Medicaid enrollees, or 22 million or 76% of child enrollees. If states do not offset federal Medicaid cuts by picking up the new costs, they could reduce Medicaid spending by covering fewer people, offering fewer benefits, or paying providers less. Read KFF’s full analysis here.
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