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NM Would Lose $12.6 Billion In Medicaid Funding Under Republican Health Bill

NM Would Lose $12.6 Billion In Medicaid Funding Under Republican Health Bill

The state's Medicaid rolls would pretty much be purged of all of low-income adults who signed up for Medicaid since 2013 under the program's expansion.

New Mexico would lose $12.6 billion in federal Medicaid funding between 2020 and 2026 if the Republican health care bill in the U.S. Senate ever gets passed, according to a new study Friday.

Also, the state’s Medicaid rolls would pretty much be purged of all of low-income adults who signed up for Medicaid since 2013 under the program’s expansion, according to the study by the Henry J. Kaiser Family Foundation.

As of June, 898,221 New Mexicans were on Medicaid, according to the New Mexico Human Services Department. Of those, 264,982 are low-income adults.

In New Mexico, Medicaid is a $6 billion annual program, with $1.2 billion coming from state government and the rest from the feds.

If the Senate bill were to become law, New Mexico’s Medicaid rolls would shrink by 28 percent over the years, the study said.

Nationally, 31 states that bought into Medicaid expansion under the Affordable Care Act, would lose $700 billion in federal funding between 2020 and 2026, the Kaiser study said.

“Our analysis shows that states would see a $700 billion reduction in federal Medicaid funds over the 2020-2026 period due to the loss of the ACA expansion,” the study said. “In the last year of this analysis, 2026, states would see a reduction in federal Medicaid funds of $121 billion and estimated reductions in coverage of 17.6 million (19 percent of total Medicaid enrollment that year).

“In 11 states, the loss of the expansion would reduce Medicaid enrollment by 30 percent or more in 2026. In the absence of other affordable coverage, it is likely that most of these people would become uninsured, which would affect their access to health care services.”

Even if Republicans don’t repeal the ACA, New Mexico stands to lose lots of Medicaid expansion money. That’s because the feds agreed to pay 100 percent of the cost of the adult expansion enrollees for the first several years.

But by 2020, the feds will pay only 90 percent of the cost of those expansion adults and the state will have to come up with the rest of the money.

New Mexico was already looking at having to come up with another $400 million by 2020 to make up for the reduced federal share of covering those expansion adults.

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Dennis Domrzalski is managing editor of ABQ Free Press. Reach him at dennis@freeabq.com.
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  • US Citizen
    July 22, 2017, 10:10 am

    Funny, how elected officials talk about not being dependent on the federal government. Then you look at the amount of money being spent. NM wants to be the sanctuary state but doesn’t even have enough money to helps it citizens with health care or education. NM is a poverty state. Many children who live in NM don’t even have to apply for free school lunches since they are automatically enrolled due to the poverty status of their county. You never here politicians talk about that. .

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The following two tabs change content below.
Dennis Domrzalski is managing editor of ABQ Free Press. Reach him at dennis@freeabq.com.