Insurance for a Healthier Future: How Medicaid Supports Us All

Medicaid is a cornerstone of healthcare in the United States, providing preventive and life-saving health coverage to nearly 70 million people in communities across the country, including people of all ages, races, and ethnicities.

Research shows that when everyone has access to the care they need, we all benefit. Now, the One Big Beautiful Bill Act (OBBBA) threatens to terminate Medicaid coverage for at least 10 million people and reduce healthcare revenue for hospitals, clinics, and providers by $797 billion by 2034. These cuts will trigger job losses and massive financial shocks throughout the healthcare system and state and local economies, and devastate progress on health equity. Coverage losses will lead to worse health and deaths that can and should have been prevented.

Key Findings

Medicaid provides essential healthcare coverage and serves as a lifeline for millions of people of all ages, and is critical to supporting the healthcare providers that serve our communities, the caregivers who support us when we have difficulties caring for ourselves, and the service members who protect our country.

Policy Recommendations

How does the One Big Beautiful Bill Act harm health and the healthcare system?

Federal funding cuts and new work reporting requirements included in the One Big Beautiful Bill Act (OBBBA) are projected to result in nearly 500,000 lost healthcare jobs, nearly one million total jobs lost, and over $900 million in lost state and local tax revenue by 2029. By 2034, at least 10 million people will lose Medicaid coverage and national healthcare spending will reduce by $797 billion. The cuts will especially impact rural and safety-net hospitals, which provide care to a higher proportion of patients with Medicaid or no insurance.

How can states protect access to Medicaid?

To protect access to Medicaid coverage and life-saving care in the face of looming federal funding cuts and work reporting requirements, state policymakers should work to make Medicaid renewals automatic and automate work requirement compliance and exemptions. States should also spend their Rural Health Transformation Fund (RHTF) funds strategically, like by increasing access to telehealth and midwives. Leveraging the support of trusted community partners, investing in self-service tools, and plain-language resources and information can also make it easier for people to successfully navigate renewals and work reporting requirements.