Provision in DeWine’s budget proposal could lead to elimination of Medicaid expansion coverage

A swirl of possible state and federal policy decisions in the coming months could lead to more than 770,000 Ohioans with lower incomes losing health coverage through Medicaid (Source: “Ohio’s budget could boot 771,000 from Medicaid pending federal budget cuts,” Cleveland Plain Dealer, Feb. 18).
 
Cutting coverage for those who are eligible under the 2013 Medicaid expansion would require action at both the federal and state level.
 
First, the U.S. Congress would need to pass legislation that decreases or eliminates the current 90% federal match rate for the Medicaid expansion population.
 
If that happens by even a 1% reduction below the current figure, Ohio’s budget, as proposed by Gov. Mike DeWine, says the Ohio Department of Medicaid “shall immediately discontinue all medical assistance for members of the [Medicaid expansion] group.” The state budget is in its early stages and the proposal is not yet near becoming law.
 
Politico reports that Congress is considering $2 trillion in cuts across the social safety net, including Medicaid. However, it remains to be seen what final budget plans will emerge from Congress.
 
The cuts would have broad health and economic consequences. Those currently covered via expansion, most of whom work at lower-paying jobs, would either seek coverage through the public marketplace or simply go uninsured. For hospitals, especially in poorer and rural areas that rely more heavily on Medicaid reimbursements, it means a significant revenue loss.

Join HPIO on Tuesday, March 4, at 1 p.m. for a webinar titled "Beyond the Basics: Medicaid and Financial Stability in Ohio." Building from data in HPIO’s Ohio Medicaid Basics 2025, the webinar will explore research evidence on Medicaid as a financial support for people with low incomes. Speakers will also highlight barriers to employer-sponsored insurance for working Ohioans, and the role that Medicaid plays in supporting Ohio workers. Register here.