Trump’s Medicaid disruption threatens vital resource for millions of Americans

Trump’s Medicaid disruption threatens vital resource for millions of Americans

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Trump’s Medicaid disruption threatens vital resource for millions of Americans
Author: Melody Schreiber
Published: Jan, 29 2025 16:03

A brief shutdown of the federal health insurance program struck fear into patients – and concern about what’s to come. Every January, Andrea Pitzer feels a simmering anxiety until the letter arrives: her mother’s Medicaid renewal. Without it, her mother’s care would cost about $10,000 a month.

On Tuesday, when the system for processing Medicaid payments to all 50 US states shut down unexpectedly, Pitzer’s anxiety erupted into full-blown fear. It seems the shutdown was related to the government-wide freeze on $3tn in grants and loans, which was paused by a federal judge until 3 February.

Medicaid systems were restored at the end of Tuesday, but the chaos and confusion could continue. There is increasing pressure from conservative lawmakers and the Trump administration to cut back the budget for Medicaid, which provides health insurance to more than 70 million Americans, or 20% of the population, experts say.

“The potential disruptions to the finances of healthcare providers and patient care would be enormous,” said Larry Levitt, executive vice-president for health policy at the non-profit KFF. Nearly half of births are covered by Medicaid, and the program is the primary payer of nursing home care. The funding freeze also seemed to affect programs like Head Start and federally qualified health centers.

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