KFF February 21, 2025
Options under consideration in Congress to significantly reduce Medicaid spending could have major implications for adults who live with mental illness. Nationwide, an estimated 52 million nonelderly adults live with mental illness, and Medicaid covers nearly one in three (29%) of them, or about 15 million adults. Changes to Medicaid under consideration include imposing a per capita cap on federal spending, reducing the federal government’s share of costs for the ACA expansion group, and imposing work requirements. Such policy changes would fundamentally alter how Medicaid financing works and large federal spending reductions would force states to make tough choices on whether to raise new revenue, restrict the number of people covered, cover fewer benefits, or cut payment rates for physicians,...
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