Medicaid on the Chopping Block: The Looming Crisis for America's Health Care Safety Net

As Congress weighs significant changes and cuts to Medicaid, the American Hospital Association (AHA) hosted a Capitol Hill briefing for congressional staff, featuring hospital and health system leaders. The speakers, including Jennifer Jones Clowers, Jon D. Doolittle, and Ruby M. Kirby, painted a grim picture of the potential impacts on patients and communities if proposed changes to the Medicaid program are implemented.

Medicaid, the nation’s largest single source of health insurance, covers approximately 72 million people, or 1 in 5 Americans. It is a lifeline for many, providing free or low-cost health care to adults and families with limited income, people with disabilities, pregnant people, and those in long-term care facilities. The program is jointly financed by state and federal governments, with states determining enrollee eligibility, service availability, and provider reimbursement levels.

The proposed cuts to Medicaid would have devastating consequences for patients, hospitals, and the economy. According to the Association of American Medical Colleges (AAMC), cuts to Medicaid would inevitably harm innumerable patients, including some of the country’s most vulnerable citizens. These are patients with complex medical needs who depend on our health systems, hospitals, and physicians to care for them. Potential cuts to Medicaid would increase the number of uninsured Americans, reduce access to care, and increase financial pressure on providers. When people lose their Medicaid coverage, they don’t stop needing health care—rather, they show up in hospital emergency departments as uninsured patients. Coverage losses would lead to higher uncompensated care costs, further straining the ability of hospitals to provide high-quality care.

The George Washington University Milken Institute School of Public Health estimates that reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

Rural communities would be particularly hard hit by Medicaid cuts. Nearly 150 rural hospitals have closed in the last 15 years, and many rural hospitals depend on Medicaid and Medicare payments as their main source of revenue. Without crucial Medicaid payments, more rural hospitals would be forced to reduce or eliminate essential services, forgo equipment upgrades, or close their doors, leading to devastating effects on patient care. The closure of any rural hospital is devastating to the community, as healthcare tends to be one of the top three employers in a rural town and is a strong economic driver. If a rural hospital closes, the negative economic impact is large, with businesses relocating and new ones not being started.

The National Rural Health Association (NRHA) has highlighted that upwards of 45% of rural hospitals are operating with negative margins. States located in the south have been the most vulnerable due to non-expansion on Medicaid, which resulted in higher amounts of uncompensated care. Cuts to Medicaid would force these providers to absorb higher rates of uncompensated care, further reducing their ability to serve the community and resulting in reductions in services provided, loss of jobs, and eventually closure. This would lead to a significant decrease in economic activity and job losses in these areas, exacerbating the economic hardship faced by rural communities.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health care industry. Reduced revenue could force hospitals, nursing homes, and doctors' offices to eliminate 477,000 jobs, according to estimates from the George Washington University Milken Institute School of Public Health. The effects of Medicaid cuts could cause state economies to lose $95 billion in 2026. This loss in economic activity would further strain state budgets, which are already under pressure to balance their finances. States may be forced to raise taxes, cut other parts of their budgets, or slash Medicaid further, leading to a vicious cycle of economic decline.

The proposed cuts to Medicaid would also result in major job losses in the health