AFSCME Fights Proposed Medicaid Cuts Threatening Workers and Services

Congressional Proposals Threaten Medicaid's Future Amid Tax Cut Plans

In a move stirring controversy, certain congressional factions are pushing for substantial reductions in Medicaid funding, aiming to channel savings towards tax cuts benefiting the affluent. The American Federation of State, County and Municipal Employees (AFSCME) has pledged to oppose such measures.

AFSCME members are mobilizing against policies that could undermine essential services for vulnerable populations, including individuals with disabilities, children, and senior citizens, while providing tax relief to large corporations and high-net-worth individuals.

Medicaid is crucial, representing the largest share of federal financial aid to states, comprising 56% of federal allocations last year. Proposed cuts could compel states to significantly curtail public service budgets and workforce.

According to AFSCME research, the consequences of these Medicaid cuts are concerning:

• States might introduce or raise Medicaid premiums, copays, and other costs for beneficiaries who are already financially strained. In extreme cases, beneficiaries could lose Medicaid coverage altogether.
• For each federal dollar spent on Medicaid, states benefit from approximately $1.53 in economic activity. Reductions in Medicaid funding could severely impact state economies.
• Communities depend on Medicaid in the aftermath of public health emergencies and disasters, such as the wildfires in Los Angeles and hurricanes. Cutting Medicaid could compromise emergency preparedness and response.
• Medicaid provides additional federal funding to hospitals serving uninsured and vulnerable patients, helping to mitigate the costs of uncompensated care. Reductions could jeopardize rural hospitals, leading to job losses and potential closures of healthcare facilities.
• The Affordable Care Act (ACA) permits states to extend Medicaid to adults earning up to 138% of the poverty level, with the federal government covering 90% of the cost. Proposed cuts might shift $631 billion or more over the next decade to state and local budgets.

The implications of these Medicaid cuts, as considered by certain congressional members, are profound. They could escalate healthcare costs, destabilize the healthcare workforce, and induce economic volatility.

Contact your member of Congress and tell them NO TO MEDICAID CUTS. Preserving public health and welfare should take precedence over tax breaks for the wealthy.