771,000 Ohioans Face Medicaid Loss Amidst Potential Funding Cuts

COLUMBUS, Ohio – A crisis looms for 771,000 Ohioans enrolled in Medicaid, the state’s public health insurance program for low-income individuals. Potential changes in state and federal policy could leave them without coverage, triggering a public health and economic emergency.

This precarious situation stems from Ohio’s 2013 expansion of Medicaid eligibility under then-Gov. John Kasich. The expansion, enacted in conjunction with the Affordable Care Act, extended coverage to those earning up to 138% of the federal poverty line—approximately $44,000 annually for a family of four. Before the expansion, Medicaid primarily covered children, pregnant women, and individuals with disabilities from low-income households.

initially, the expansion was fully funded by the federal government. However,this federal share gradually decreased,settling at a 90-10 federal-state split by 2020. Other Medicaid populations in Ohio receive a slightly lower federal match, with the federal government covering less than two-thirds of the costs.

Eliminating coverage for expansion-eligible individuals requires action from both the federal and state governments, currently controlled by Republicans. Congress would need to reduce or eliminate the federal match. “So even if the match rate decreased by one percentage point, the whole Medicaid expansion population would cease to have coverage,” said Amy Rohling mcgee, president of the Health Policy Institute of Ohio. This is precisely what Gov. Mike DeWine’s proposed budget mandates: if the federal match decreases, the Ohio Department of Medicaid “shall promptly discontinue all medical assistance for members of the [Medicaid expansion] group.”

This proposed budget change carries meaningful implications.McGee notes that most individuals in the Medicaid expansion population work low-wage jobs in service, low-skill healthcare, and agriculture. A funding cut,however small,would leave them without coverage.

Adding to the uncertainty, congress is considering $2 trillion in cuts to social safety net programs, including Medicaid. “That’s big,” said Dan Skinner, who teaches healthcare policy at Ohio University. “It’s obviously going to wreak havoc on health care access for all sorts of people.” While these cuts are not guaranteed, the potential impact is undeniable.

Currently, Ohio can terminate coverage for the expansion population if federal funding is reduced. However, the proposed budget makes this action mandatory. State medicaid Director Maureen Corcoran estimated that the program will spend $48.1 billion in fiscal year 2026, with the state contributing $14.7 billion. As of january 2025, 770,793 ohioans were covered under the expansion, out of approximately 3 million total Medicaid recipients. The expansion population’s coverage costs $8.4 billion annually (state and federal combined).

The state’s share of this cost would increase significantly with each percentage point reduction in federal funding.A 1% reduction would increase the state’s share by $84 million. The consequences extend beyond individual healthcare access. Hospitals, especially in rural and poorer areas, would face significant revenue losses. Addiction treatment, heavily reliant on Medicaid expansion funding, would also be severely impacted. “Medicaid expansion has been the primary source of funding for addiction treatment in the state,” according to Loren Anthes,a healthcare consultant.At times, Medicaid has covered half of all buprenorphine treatments.

The proposed budget changes come as Ohio seeks federal permission to impose work or study requirements on Medicaid recipients. House Speaker Matt Huffman, a Lima Republican, noted that concerns about federal funding cessation were raised during the initial expansion discussions. “The description was well then we can adjust it accordingly,” he said. “Well here we are 12 years later, and we’re having that conversation.” House minority Leader Allison Russo, a Columbus-area Democrat, expressed concern about the potential impact on children and pregnant women, and suggested using Ohio’s rainy day fund if necessary.

Nine other states have already implemented similar trigger laws. The potential loss of Medicaid coverage for 771,000 Ohioans underscores the significant implications of these proposed changes, raising concerns about healthcare access, economic stability, and the future of vital social safety net programs.

“This policy could immediately disenfranchise nearly a million low-income residents who rely heavily on Medicaid for their health services.”

Dr. Emily Carter, Health Policy Analyst

“This disruption could stall efforts to combat the state’s ongoing opioid crisis, a public health emergency that requires steadfast financial and systemic support.”

Dr. Emily Carter, Health Policy Analyst

“The balance lies in policy adaptability and provision of complementary resources to ease the transition for those most vulnerable without sacrificing health coverage.”

Dr. Emily carter, Health Policy Analyst

Headline: “The Impending Medicaid Crisis: What Ohio’s Potential Funding Cuts Mean for 771,000 Low-Income Residents”

Opening Statement: As the debate around healthcare continues to intensify, millions of American families find themselves at a precarious crossroads. One of the most striking potential consequences of recent policy talks is the looming threat to Medicaid coverage for nearly 771,000 Ohioans. What would the future look like for these low-income populations if they lose their health coverage?

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An Exclusive Interview with Dr. Sarah Thompson, Health policy Professor at Ohio State University

Senior editor: dr. Thompson, with Ohio considering a policy that could trigger disassembly of Medicaid coverage for hundreds of thousands of residents, can you shed light on the potential fallout for both individuals and healthcare systems?

dr. Sarah Thompson: Absolutely. If the proposed policy changes take effect, Ohio could see a significant impact on healthcare accessibility and economic stability. These residents predominantly work in low-wage jobs, and Medicaid is their lifeline for medical care. Without it, we not only jeopardize their health but also threaten the very foundations of our rural healthcare systems. Hospitals in these areas, which heavily rely on Medicaid funds, might face catastrophic revenue losses, compromising their ability to provide essential services.

Senior Editor: How do these proposed policy changes illustrate the broader challenges in the Medicaid expansion programs across the U.S.?

Dr.Thompson: This situation in Ohio exemplifies the vulnerabilities inherent in Medicaid expansion programs nationwide. While the federal-state funding model initially supported this expansion, its gradual reduction places a heavier fiscal burden on states. The mismatch between funding and healthcare needs can lead to an untenable situation, especially in states like Ohio that have seen significant coverage expansions. This forces policymakers to consider difficult decisions about eligibility and funding allocations.

Senior Editor: The opioid crisis has been a significant issue in Ohio.How would funding cuts across Medicaid expansion affect this ongoing public health emergency?

Dr. Thompson: The opioid crisis has long been a public health emergency requiring unwavering support and resources.Medicaid expansion has been the cornerstone of Ohio’s funding for addiction treatment. Any reduction or cessation of Medicaid funding puts these vital services at risk. Treating addiction involves both medical and long-term support systems, which could be severely disrupted if the expansion coverage is lost. The loss of Medicaid could thus stall the ongoing efforts to combat the opioid crisis, depriving many of access to necessary medications like buprenorphine.

Senior Editor: Could you elaborate on the economic implications, not just for the individuals losing coverage but also for ohio as a whole?

Dr. Thompson: Certainly. The economic ramifications extend far beyond individual healthcare access. For the state, increased healthcare costs and potential loss of federal funding could strain the budget significantly. Each percentage point reduction in federal Medicaid funding would significantly increase the state’s financial burden.Moreover, untreated health conditions could lead to lost productivity, increased emergency room visits, and higher long-term healthcare costs. This can erode the overall economic fabric, impacting everything from job availability to community health services.

Senior Editor: What potential solutions or strategies might help mitigate these risks while ensuring continued healthcare access for low-income Ohioans?

Dr. Thompson: Balancing fiscal sustainability with healthcare needs requires innovative policy solutions. States could explore healthcare cooperatives or public-private partnerships to offset costs. additionally, implementing preventative care measures can reduce long-term expenses by minimizing emergency interventions. On a legislative level, advocating for more flexible federal funding models and ensuring emergency reserves can definitely help protect Medicaid populations against sudden funding shifts.

Key Takeaways:

• Healthcare Accessibility at Risk: Medicaid funding cuts could lead to a healthcare crisis for hundreds of thousands in Ohio, impacting the most vulnerable populations.
• Economic and Healthcare System Impact: Hospitals, especially in rural areas, could see catastrophic revenue losses, threatening essential services.
• Opioid Crisis Worsening: Reduced funding for addiction treatment services could exacerbate the opioid crisis, undermining years of progress.
• State Budget Strains: Decreased federal funding would dramatically increase the financial burden on Ohio’s state budget.

Conclusion: The potential Medicaid cuts in Ohio serve as a critical case study in understanding the implications of policy changes on healthcare access and economic stability. As Ohio navigates these challenges, it highlights the need for complete solutions that protect our healthcare systems and ensure no one is left behind. We invite readers to share their thoughts and experiences in the comments below and engage with us on social media to discuss these pressing issues.

Your insights are invaluable and can contribute to this ongoing discussion. Share this article and let us know how policy changes might impact your community.