As the country faces possible budget cuts in 2025, one key, but often misunderstood, health care program is consistently brought up: Medicaid. Established 60 years ago this year, Medicaid serves approximately 340,000 Utahns, nearly half of which are children. The program is vital in ensuring that all Utahns have the health care they need, regardless of their income status. Children, the elderly in long-term care and people with disabilities are some of the key groups served by Medicaid.
Though many recognize the importance of Medicaid, many Utahns don’t understand Medicaid and what it does. And many policymakers at both the state and federal level are willing to entertain cuts to this vital program, a program that, according to KFF, majorities of Americans, both Republican and Democrat, support. As Congress considers up to $2.3 trillion in cuts to Medicaid, it’s important to recognize what Medicaid does, who it serves and the consequences of such cuts.
Medicaid is the nation’s health insurance program for low-income Americans. It exists because there is no other affordable option for these families and individuals. Each state manages their own Medicaid program with guidance and funding from the federal government. In Utah, according to the Kem C. Gardner Policy Institute, around 10% (340,000) of the population is covered by Medicaid. Children account for half of the Medicaid population in the state. While the state funds a portion of the Medicaid program, much of the program (68%) is funded by the federal government, with Utah funding about $1.7 billion of the Medicaid program in 2024 and the federal government funding $3.6 billion. A federal cut of this size would devastate Utah Medicaid and could result in significant decreases in medically necessary services for Medicaid recipients.
In the event of cuts, many Utahns who benefit from Medicaid will struggle to find health care elsewhere, and many will have to visit emergency rooms for routine care. This would be both costly and ineffective and will result in higher premiums and spending on health care from the rest of Utahns to cover increased costs. Children and families who utilize Medicaid will face worse health outcomes without it, which will result in greater health disparities in Utah and higher spending on health care.
Children, people with disabilities and rural Utahns will be especially vulnerable. Dental care, routine checkups, long-term care, maternal care, behavioral health and children’s health will all be negatively impacted. Cutting Medicaid will harm the entire health care delivery system, negatively impacting doctors, nurses, clinics and health systems that rely on Medicaid funding and patients for revenue.
The potential cuts to Medicaid being discussed in Congress — about $2.3 trillion over 10 years — are huge and harmful. They are also rushed and lack support from the public and would be implemented to pay for tax cuts for the rich. While the Medicaid program, and the nation’s health care system in general, can be improved, rushed and devastating cuts are not the answer. Republicans and Democrats alike support the program and, according to KFF, view other health care issues as more important than Medicaid cuts. Congress should focus on addressing those issues, including greater price transparency in health care and lowering the costs of prescription drugs.
Massive cuts to Medicaid will not make America healthy again or make health care more affordable. Instead, it will harm millions of Americans and cause incredible damage to lives and livelihoods. That outcome should be unacceptable in Utah, a state that prioritizes both family and economic strength. Congress should protect this vital program for all Utahns and Americans who benefit from it and Utahns across the political spectrum should urge their elected officials to strengthen, rather than weaken, this vital health program.