New Mexico will be forced to make tough choices under the Republican healthcare bill in Congress that slashes federal funding for Medicaid. A new study shows that the bill’s plans to reduce federal Medicaid funding would require the state to come up with an additional $427 million annually to maintain healthcare coverage for its 900,000 residents enrolled in Medicaid. If it can’t or won’t, more than 250,000 New Mexicans could lose their coverage and become uninsured.
The study, released today, was conducted by Dr. Kelly O’Donnell, an economist with the Robert Wood Johnson Foundation at UNM and is available here.
The bill drastically lowers the federal funding match for Medicaid expansion adults and permanently caps funding on the entire program, resulting in a loss of $11.4 billion in federal revenues and more than 30,000 jobs by 2026. It’s an understatement to say that this would devastate New Mexico’s healthcare system and economy.
The bill reneges on the federal government’s long-standing commitment to funding Medicaid. And President Trump promised on the campaign trail that he would not cut Medicaid, yet his administration has revived negotiations for the bill after it failed to garner enough votes among House Republicans last month. The latest proposal, in addition to decimating Medicaid funding, would also remove important consumer protections like allowing insurance companies to charge higher rates for people with pre-existing conditions and eliminating coverage of essential services like mental health and maternity care.
Congressman Pearce has not taken a position on the legislation. He should take a look at this study because the consequences for New Mexico will be drastic.