Medicaid cuts and their ripple effect

Photo courtesy: Caribbean News Weekly

If you’re among the millions of Americans benefiting from Medicaid, you’ve probably noticed that significant changes are imminent.

The Medicaid continuous coverage provision, initially introduced under the Families First Coronavirus Act (CARES Act) by the federal government to aid vulnerable individuals during the COVID-19 pandemic, concluded on March 31, 2023. Consequently, all individuals currently receiving Medicaid benefits will now need to undergo a redetermination of eligibility.

HB 121 was passed by the House on April 13, and subsequently passed the Senate on May 4, and Gov. Ron DeSantis signed it into law.

The Florida Kidcare Program implements the federal Children’s Health Insurance Program (CHIP) in Florida. The CHIP provides federal matching funds to states to subsidize health insurance coverage for children in families with incomes too high to qualify for Medicaid and meet other eligibility requirements.

Ruth Tavelus, a registered nurse at the University of Florida Shands Hospital, spoke about the importance of Florida KidCare.

“Me and my family were insured under Florida Kidcare for many years. Now that families are required to requalify, many may miss out due to fear of being rejected. Or they may just not want to complete the application process again,” she said.

Children, who make up a significant portion of Medicaid beneficiaries, are likely to be the most impacted by the cuts. Decreased access to pediatric care can hinder their growth and well-being. The long-term effects may arise as educational challenges within communities.

According to Medicaid’s government site, to participate in Medicaid, federal law requires states to cover certain groups of individuals. Low-income families, qualified pregnant women and children, and individuals receiving Supplemental Security Income (SSI) are examples of mandatory eligibility groups. States have additional options for coverage and may choose to cover other groups, such as individuals receiving home and community-based services and children in foster care who are not otherwise eligible.

Medicaid cuts often lead to a strained healthcare infrastructure. Healthcare providers, particularly those serving Medicaid beneficiaries, may face financial challenges, limiting their ability to offer comprehensive services. Reduced reimbursement rates can deter healthcare professionals from participating in the Medicaid program, further limiting the availability of care for vulnerable populations.

The impact on community health is substantial. With Medicaid cuts, preventive services such as vaccinations and screenings, may be scaled back, contributing to a potential rise in untreated illnesses and more severe health outcomes. This not only affects individuals directly but also places an additional burden on emergency services as untreated conditions lead to more frequent and severe hospitalizations.

The consequences of Medicaid cuts extend beyond healthcare. It affects community finances, education and overall health. Individuals who lose Medicaid coverage may face increased financial strain due to medical bills, impacting their ability to meet basic needs like housing and nutrition. Recognizing the importance of Medicaid as a safety net and advocating for policies that prioritize health is essential for maintaining the well-being of our communities.