Governor Ferguson denounces Congressional Republicans’ decision to gut Medicaid in cruel, unprecedented vote
Washington among states hit hardest, with hundreds of thousands of Washingtonians losing health coverage
OLYMPIA – Governor Bob Ferguson denounced unprecedented cuts to Medicaid, approved by Congressional Republicans on Thursday, that will fundamentally alter Washington’s health care system and result in hundreds of thousands of Washingtonians losing their health care.
Republicans in Congress approved $1 trillion in Medicaid cuts over the next 10 years, the largest cut to Medicaid in history, according to health policy research group Kaiser Family Foundation (KFF). The bill threatens health care access in Washington, especially in rural areas, and will cause Washington state to lose at least $1.5 billion in hospital reimbursements by 2031.
Washington’s U.S. Reps. Dan Newhouse and Michael Baumgartner voted in favor of the cruel cuts, which will disproportionately affect their constituents in Eastern and Central Washington. Between these two districts, more than 500,000 people in Central and Eastern Washington are on Medicaid.
Medicaid is a critical partnership between federal and state governments. Right now, nearly 2 million Washingtonians — roughly 1 in 5 — are enrolled in Apple Health, the state’s Medicaid program.
Washington spends $21 billion on Medicaid annually, $13 billion of which is paid by the federal government. KFF estimates Washington will lose between $31 billion and $51 billion in federal Medicaid dollars over the next 10 years, or at least $3 billion per year.
“It is impossible to overstate just how devastating this legislation will be for Washingtonians,” Governor Ferguson said. “This morally bankrupt decision will cause our most vulnerable Washingtonians to lose their health care coverage and likely force hospital closures across the state, all to pay for tax breaks for the richest Americans.”
These cuts will likely result in rural and urban hospital closures.
At least 250,000 Washingtonians will lose Medicaid coverage. In addition, as many as 150,000 Washingtonians will be priced out of the state’s health care exchange.
These cuts effectively reverse any progress made to expand coverage under the Affordable Care Act. Last year, Washington had an uninsured rate of 4.8%, the lowest in the country. These cuts will balloon that number into double digits.
An analysis of the cuts from KFF found that Washington will be among the states hit hardest, estimating the state will lose an estimated 26% of its Medicaid enrollment.
Children will be particularly impacted by Medicaid cuts. Statewide, 800,000 children rely on Medicaid for their health care coverage. In 26 of Washington’s 39 counties, more than half of all children are covered by Medicaid. In Central Washington, 70 percent of all children are enrolled in Medicaid. In some counties, that number is even greater. For example, approximately 80 percent of kids in Yakima County and approximately 90 percent of kids in Adams County are on Medicaid.
Moreover, 70 percent of all births in rural Washington are covered by the program. Medicaid enrollees account for nearly half — 45 percent — of all births statewide.
Other vulnerable populations will also be significantly impacted. More than 105,000 Washingtonians depend on Medicaid for long-term care, and the program covers 3 in 5 nursing home residents and 3 in 8 people with disabilities. Medicaid is also the largest payer for opioid use disorder treatment in the state.
These cuts to Medicaid will not only impact enrollees in the program. The new law will decimate federal funding for Medicaid over the next five years — fundamentally altering the state’s health care system and how Washington administers Apple Health. This administrative burden is expected to cost the state tens of millions of dollars, at a time when the state faces significant budget challenges.
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