Budget Bill Threatens Medicaid, Mental Health Amid Crisis

The Impact of the Proposed Budget Bill on America's Mental Health and Social Services

The recent budget bill passed by the House of Representatives has sparked significant concern among health professionals and advocates. The bill, which narrowly passed by a single vote, has been criticized for its potential to severely impact Medicaid and other essential services. At the heart of this issue is the threat to millions of Americans who rely on these services for their health and well-being.

America’s mental health crisis would worsen if the budget bill becomes law
AFSCME Photo

Marsha Glover, a family crisis therapist and president of AFSCME Local 3078, has expressed grave concerns regarding the bill's implications. In her view, the legislation is poised to 'do big, horrible things to behavioral health in this country.' Her perspective is shared by many who fear the detrimental effects of the proposed cuts.

The Congressional Budget Office estimates that the bill could strip health coverage from as many as 16 million people. This potential loss of coverage extends beyond Medicaid, as it threatens food assistance programs, Medicare, and other vital public services, all while providing substantial tax cuts to the wealthy.

Medicaid, a joint federal and state program, serves as a critical lifeline for low-income families, children, individuals with disabilities, and some elderly people. It is the largest payer for mental health services and increasingly funds substance abuse treatment across the U.S. According to a report by CLASP, Medicaid covers nearly 40% of all children, providing essential mental health services to millions.

The report highlights that "Medicaid … pays every 1 in 4 dollars for vital mental health and substance use disorder treatment." A rollback or reduction in Medicaid funding would significantly undermine progress made in expanding mental health access, especially since the COVID-19 pandemic.

Glover's firsthand experiences underscore the bill's potential impact. She encounters numerous cases where Medicaid-funded treatment is crucial, particularly for families grappling with substance abuse, such as fentanyl addiction. She warns that cuts to these services could have fatal consequences for vulnerable populations.

One alarming scenario she describes involves newborns from drug-addicted parents. Medicaid supports both the infants and their parents through treatment programs. "If those services get cut, then those babies could end up passing away from not having the medical attention that they need," Glover explains.

The timing of these proposed cuts is particularly concerning, given the nation's ongoing mental health crisis. With increasing demand for mental health treatment and over one in five U.S. adults living with mental illness, the potential damage to Medicaid could not come at a worse time.

Advocates are calling for collective action to oppose the bill. For more information on how to get involved, visit Get Organized.