Cantwell Tells GOP: Hands Off Medicaid

House Republicans recently revealed proposal to cut $2.3 trillion from Medicaid to pay for Trump policy priorities

WASHINGTON, D.C. – Last week, U.S. Senator Maria Cantwell (D-WA), a senior member of the Committee on Finance and ranking member of the Commerce Committee, joined a letter with 46 Senators calling on Senate Majority Leader John Thune and House Speaker Mike Johnson to reject any legislation or budget proposals that would make cuts to Medicaid.

“Republicans are proposing cuts to the Medicaid program from hundreds of billions to multiple trillions of dollars,” the Senators wrote. “States simply cannot absorb these massive funding cuts without hurting children, seniors, people with disabilities, tribal populations, patients with chronic illnesses, and many other Americans who rely on Medicaid.”

“Given that levels of abuse and waste within Medicaid are not commensurate to cutting billions from the program, President Trump and Congressional Leadership should uphold this commitment to enhance, rather than gut, Medicaid. The American people should be assured that Medicaid will be protected. We urge you to reject proposals that use Medicaid as a piggy bank for partisan priorities and continue to defend the importance of this vital program,” the Senators concluded. 

More than 1.8 million Washingtonians are enrolled in Medicaid (Apple Health). One in six adults, two in five children, three in five nursing home residents, and three in eight people with disabilities in Washington are covered by Medicaid. Any cuts in federal Medicaid funding would not only reduce the number of enrollees, it would potentially exacerbate Washington state’s budget deficit as states would have to make up for the shortfall by lowering coverage levels or cutting services.

Sen. Cantwell is a longtime advocate for expanding and protecting Medicaid and Medicare. Rather than cutting Medicaid payments, Sen. Cantwell has introduced legislation to generate cost savings for American taxpayers. Sen. Cantwell has championed the Pharmacy Benefit Manager (PBM) Transparency Act to crack down on PBMs and ban “spread pricing,” the PBM practice of charging a health insurance plan more to process a prescription than it reimburses the pharmacy and pocketing the difference – the spread. According to a recent CBO report, eliminating spread pricing in just the Medicaid program would result in approximately $900 million in savings over 10 years.

Sen. Cantwell has also introduced legislation to expand Medicaid payments for low-barrier fentanyl treatment programs and rural hospitals’ labor and delivery units.

The full text of the letter is HERE and below.

Dear Majority Leader Thune and Speaker Johnson,

As we begin a new Congress, we seek to pursue policies that improve the lives of Americans across this country. However, we are deeply concerned about recent reporting on Republican plans to use the budget reconciliation process to advance President Trump’s reckless agenda.  While we disagree on these costly and misguided policies, we are hopeful that there is bipartisan understanding of Medicaid’s importance for millions across the country, that the Medicaid program should be enhanced rather than cut, and that Republican policies should not be paid for at the expense of working-class Americans losing their health care.  

Medicaid is a lifeline for communities across the country. Nearly 80 million Americans get their health insurance through Medicaid and the Children’s Health Insurance Program (CHIP), which provide services Americans rely on to remain healthy, go to school, and thrive at work. Medicaid pays for nearly half of all births in the U.S., provides health insurance coverage to nearly half of all of America’s children, provides care to 3 in 5 nursing home residents, and provides peace of mind to 17 million women of reproductive age. Medicaid is also a lifeline for rural communities, with children and non-elderly adults in rural areas more likely to be covered by Medicaid compared to those in urban areas.

Republicans are proposing cuts to the Medicaid program from hundreds of billions to multiple trillions of dollars. ^[1] Cuts to Medicaid through drastically changing the program’s financing structure or imposing additional barriers to coverage are dangerous to the millions of people who rely on the program. These proposals will also force states to make difficult decisions that will result in millions getting kicked off their coverage and providers struggling to keep their practices open. States simply cannot absorb these massive funding cuts without hurting children, seniors, people with disabilities, tribal populations, patients with chronic illnesses, and many other Americans who rely on Medicaid.

Speaking about Medicaid last week, President Trump said, “We’re not going to do anything with that, unless we can find some abuse or waste.  The people won’t be affected. It will only be more effective and better.”^[2]

Given that levels of abuse and waste within Medicaid are not commensurate to cutting billions from the program, President Trump and Congressional Leadership should uphold this commitment to enhance, rather than gut, Medicaid. The American people should be assured that Medicaid will be protected. We urge you to reject proposals that use Medicaid as a piggy bank for partisan priorities and continue to defend the importance of this vital program. 

Sincerely,

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