Last night, the U.S. House passed its Budget Resolution, which commits the House to the funding cut targets included in the resolution – $2 Trillion in total cuts, and a minimum of $880 Billion cuts assigned to the committee that oversees Medicaid. Now committees will start the process of deciding what cuts to make and writing the details into legislation. Based on previous proposals from House Budget Committee Republican leadership, these cuts are widely anticipated to come from the Medicaid program.
Today, the Wisconsin Medicaid Coalition released a compilation of state data illustrating the number of businesses, amount of Medicaid dollars, and number of people in every Wisconsin county that could be impacted by Medicaid cuts. Wisconsin data shows Medicaid infused $11 Billion into 39,250 Wisconsin businesses throughout the state in 2023. Federal Medicaid spending cuts would have a devastating impact on Wisconsin’s economy, small businesses, and workforce.
“Medicaid dollars support services in every county,” said John Tuohy, Executive Director of the Wisconsin County Human Service Association. “Medicaid funding matters to local economies. Medicaid dollars support jobs and paychecks for workers providing health, mental health, and long-term care.”
On average, more than 23% of people living in every Wisconsin county rely on Medicaid for health, mental health, or long-term care. Some counties have as much as 65% of their population in a Medicaid program. Medicaid pays the workers and businesses that provide the care.
Many businesses rely on Medicaid as a stable and reliable part of their operating budget. Cuts to federal Medicaid spending directly impact the cash flow and funding needed to make payroll, cover operating costs, and pay bills to vendors and other local businesses.
Medicaid dollars keep clinics, nursing homes, and businesses that provide in-home care open. Especially in rural areas, Medicaid funding is the difference between having care options or having closures.
“Medicaid dollars keep clinics and nursing homes open and is a key driver in our rural community,” said Kim Hawthorne, CEO, Scenic Bluffs Community Health Centers, based out of Cashton, Wisconsin. “Especially in rural areas, Medicaid funding is the difference between having care options or having closures. At Scenic Bluffs, nearly 45% of our patients rely on Medicaid as the payer for their care—many of whom would be uninsured or unable to afford necessary services without it. Statewide, Medicaid revenue accounts for about half of overall revenue at Community Health Centers which rely on the program for sustainability and patient care – including preventative medical, dental, and behavioral health services.”
“Community home care businesses are the care infrastructure for communities. They serve all residents, including those who aren’t in a Medicaid program,” said Patti Becker, member of InControl Board of Directors. “Wisconsin’s system is already struggling to meet the needs. If businesses close or scale down their services, it means less health and long-term care capacity for everyone.”
Medicaid is the funding source for Wisconsin’s institution diversion programs—Family Care, IRIS, and CLTS. Medicaid dollars pay for the workers who keep people with disabilities and older adults living independently in their homes and out of hospitals and institutions.
“More than 9,250 Home and Community Based businesses keep people with disabilities and older adults living independently,” said Erin Smith, Chief Executive Officer of the Disability Service Provider Network. “Our work results in tremendous cost savings for the state. It allows family members to be able to stay in the workforce themselves.”
“By circumstance or age, most of us will be touched by Medicaid,” said Becker. “Medicaid is the primary payer for long-term care, whether it’s in-home care, assisted living, or nursing homes. Medicaid dollars are an investment in our future selves. You can’t get care if there no businesses or workers to provide it.”
Federal Medicaid spending cuts will impact Wisconsin’s state budget, health and long-term care businesses, and the 1.2 Million (18%) Wisconsinites who rely on Medicaid for health, mental health, and in-home or facility based long term care.
Wisconsin Medicaid covers low-income pregnant women, children, people with disabilities, people with mental illness, low-income workers, and low-income older adults rely on Medicaid for health and long-term care. The largest group of people covered by Medicaid are kids, including kids with special health care needs and disabilities.
