by Emily Beauregard, Kentucky Lantern
February 17, 2025
This year marks the 60th anniversary of the Medicaid program. Over the last six decades, Medicaid has been one of our most successful efforts to safeguard health coverage in an ever-changing world.
As a state and federal partnership, it also serves as a vital reminder of the longstanding good our government can achieve when it comes together to tackle big challenges.
Medicaid allows for vital access to care for low-income families, children, pregnant women, elderly adults and individuals with disabilities.
In Kentucky it’s been an indispensable pillar for our health care system — a lifeline for about a third of the state’s population. Without Medicaid, many of the Kentuckians who need care most would face insurmountable barriers, and our communities would lose an essential pipeline for federal funds.
But Medicaid doesn’t just protect the health and well-being of some of our most vulnerable groups, it also contributes significantly to the overall health infrastructure that benefits every Kentuckian.
Federal investment makes Medicaid crucial to Kentucky’s system of care. For every $1 the state spends for Medicaid, the federal government chips in about $5. These dollars don’t just help low-income Kentuckians, they flow through our hospitals, pharmacies, health centers, and care facilities into the state economy.
While the sheer magnitude of Medicaid spending may make it a tempting target for cuts, the reality is that cutting Medicaid ends up costing far more than it saves.
The program provides cost-effective care comparable in quality to private insurance (but about 22% cheaper). By providing preventive care and managing chronic conditions, Medicaid reduces the overall health care burden by minimizing expensive emergency room visits, hospitalizations and readmissions. These cost-savings are crucial for Kentucky as we grapple with high rates of chronic diseases like diabetes, heart disease, and substance use disorders.
Kentucky is a predominantly rural state with many areas already struggling with access to care and economic opportunity. We know reductions in Medicaid funding disproportionately affect rural areas, leading to hospital closures, exacerbating health disparities and creating economic instability.
As Kentucky’s largest source of federal funding, cuts to Medicaid don’t just hurt our most vulnerable Kentuckians or affect the availability of our health care providers, they’ll impact our entire economy. Every Kentuckian, regardless of socioeconomic status, will feel that pain.
Ensuring continuous and adequate Medicaid funding isn’t just a matter of compassion but also of fiscal responsibility. Just as Medicaid has helped Kentucky climb up the health rankings, it’s helping Kentucky climb the economic rankings, leading to higher GDP, increased state revenues and more wage growth.
Cuts or changes to Medicaid — whether it’s block grants, per capita caps, work reporting requirements, FMAP changes or other mechanisms — mean stripping away coverage and driving up costs.
Instead of dramatic cuts and program overhauls, efforts should be directed towards strengthening the program to meet the evolving needs of Kentuckians. Medicaid has protected us through economic downturn, natural disaster, even a global pandemic. Now it’s time to protect Medicaid.
Kentucky’s families can’t afford to lose the care they count on. As a budget resolution is expected to come next month, Kentuckians need Congress to take Medicaid cuts off the table.
Kentucky Lantern is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Kentucky Lantern maintains editorial independence. Contact Editor Jamie Lucke for questions: info@kentuckylantern.com.
re-published using Creative Commons license; original article link: Kentuckians Can't Afford Federal Cuts to Medicaid
