Representative Austin Scott of Georgia revealed that House Republicans are considering altering the current Medicaid expansion funding formula. During an appearance on Fox Business’ Mornings With Maria, Scott discussed a proposal to reduce the federal government’s contribution to Medicaid under the Affordable Care Act (ACA). Currently, the federal government covers 90% of the costs for states that expanded Medicaid, but Republicans are suggesting a return to a more traditional federal share, ranging from 50% to 80%.
Proposed Medicaid Funding Shift Could Strain State Budgets and Spark Political Conflict
More than 80 million Americans rely on Medicaid, making it a critical component of the nation’s healthcare safety net. While former President Donald Trump has stated he does not support cutting the program, some Republicans in Congress are pushing for changes. The proposed shift in funding responsibilities could significantly impact state budgets, potentially igniting a political battle within the Republican Party and with Democrats.
GOP Eyes Medicaid Funding Cuts That Could Shift Costs to States and Threaten Coverage NationwideScott emphasized that the proposed adjustment would not remove people from Medicaid as long as governors continued to fund the program. He described the change as a modest increase in state responsibility. However, by decreasing the federal match, states would be required to shoulder a larger portion of Medicaid costs, which could challenge their ability to maintain current coverage levels without raising taxes or cutting other services.
Bipartisan Concerns Rise Over Medicaid Cuts as States Face Coverage Reduction Risks
Democrats and some centrist Republicans have expressed strong opposition to the idea. Critics argue that many states have automatic policies that reduce enrollment if federal funding falls below the 90% threshold. Arizona Senator Ruben Gallego warned that such changes could lead to hundreds of thousands losing coverage.
Similarly, Georgia State Representative Dr. Michelle Au noted that states cannot maintain the same level of service without the ACA’s enhanced funding and accused Republicans of setting governors up to take the blame.
As of now, House leadership has not officially announced any legislative changes to Medicaid funding. However, the matter is likely to remain a topic of discussion as Congress debates upcoming legislation backed by Trump, which includes tax cut extensions and potential spending reductions. Any formal attempt to change Medicaid could face significant hurdles both within the GOP and across the aisle, highlighting the politically sensitive nature of healthcare reform.