As the prospect of Congress passing additional COVID-19 aid for state Medicaid programs this fall dims, some states are already facing deep cuts that could have painful ripple effects for patients and providers alike.
Cuts to Medicaid, the safety net health insurance program that covers 1 in 5 Americans, could be disastrous during a health and economic crisis like the coronavirus pandemic, state and health care leaders have warned, given Medicaid enrollment rises during economic downturns, just as state revenues fall and budgets constrict. This spring, Congress increased federal matching funds for Medicaid by 6.2 percentage points to help stabilize the program during the pandemic, but states have asked for a bump to at least 12 percentage points to the Federal Medical Assistance Percentage.
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