West Wake News

Congress is currently considering substantial cuts to the Medicaid program. Adriana Corredor-Waldron, an assistant professor of economics at North Carolina State University, offers insights into the potential economic and health system impacts of these changes.

“Medicaid is a joint federal-state program, so the precise impact of any cuts will vary based on how individual states respond to reduced federal funding,” Corredor-Waldron explains. She notes that states might limit eligibility, especially for low-income adults without disabilities or dependents covered by Affordable Care Act expansions. Additionally, states could reduce optional benefits such as prescription drug coverage and Home and Community-Based Services (HCBS). A reduction in HCBS services could affect care for disabled individuals living in communities and potentially increase demand for nursing home care—a mandatory benefit all states must provide.

Corredor-Waldron also highlights that “evidence on Medicaid disenrollment of adults suggests an increase in employment and job-search activities among some newly disenrolled individuals.” However, she cautions that research indicates about 40% of those who lose Medicaid remain uninsured for many years, limiting their access to essential health care. This long-term disenrollment could raise uncompensated care costs for hospitals, particularly in areas with high Medicaid enrollment since hospitals are required to provide emergency care regardless of insurance status.

Adriana Corredor-Waldron can be contacted at amcorred@ncsu.edu.