Federal Medicaid cuts could shift $44.3B in costs to expansion states

Healthcare DIVE February 27, 2025
Susanna Vogel

The 41 states that expanded Medicaid could be asked to spend more than 25% more to cover care costs if potential cuts are approved by Congress. Some states may cut the expansion program instead.

Dive Brief:

• If Congress slashes funding for Medicaid, states that expanded coverage could have to find $44.3 billion in state budget cuts or new revenue to fund the program next year — hiking state spending by about 25.6% on average, warns a new report from the Urban Institute and Robert Wood Johnson Foundation.
• States could cover the shortfall by limiting Medicaid eligibility or reducing provider reimbursement rates, according to the report. However, some may choose to eliminate their expansion programs entirely.
• If all states choose...

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