Connecticut officials are warning of major cuts to Medicaid in the state if the federal budget passes as proposed.
The budget bill that passed the House earlier this week calls for $880 billion in cuts to the Energy and Commerce Committee, which funds Medicaid.
It’s not clear where exactly the cuts would be made — and Republican lawmakers have been adamant that they won’t be from Medicaid — but Medicaid spending accounted for 14% of the federal budget in 2023. Democrats say it’s hard to imagine where the cuts would come from otherwise.
“The reality is that for people who are struggling the most, who have the most challenges in our state, are going to be the most impacted,” Connecticut Treasurer Erick Russell (D) said on Thursday. “And we're seeing this with respect to Medicaid, but also threats to cuts around health care more broadly, and childcare and food assistance programs.”
If the federal government reduces its Medicaid funding match to the standard 50%, Connecticut would need to spend $850 million more to make up the difference.
Adherence to the state’s fiscal guardrails could prevent lawmakers from approving that increase, which would increase the number of uninsured people in the state by over 70%.
“Three in eight Connecticut children rely on Medicaid, yet Washington Republicans have voted to gut the program to bankroll tax cuts for the wealthiest Americans,” Senate Majority Leader Bob Duff said. “Think about that — they’re taking healthcare away from children and nursing home residents just to hand a windfall to millionaires. If that’s not immoral, I don’t know what is.”
The federal government currently matches Medicaid funding under the Affordable Care Act expansion at 87%.
Nearly one million Connecticut residents are on Medicaid.
