01.14.2025 / Press Release

Medicaid Matters: As Congress Contemplates Cuts and Caps, Consumer Groups Highlight Need to Prioritize and Protect Vital Health Coverage and Economic Security for Millions

WASHINGTON, D.C. – Families USA today released a new publication, “Medicaid Matters: To People, Our Economy and the Health Care System” that outlines how Medicaid is a critical lifeline for 80 million people — including rural Americans, children, vulnerable seniors, people with disabilities, and low-income working families and veterans. This release comes as Republican leadership has signaled the potential for major cuts to the Medicaid program to fund President-elect Trump’s tax cuts for billionaires and big corporations.

As the largest source of public health coverage, Medicaid is essential to safeguarding the financial stability and well-being of millions of Americans. The publication comes on the heels of the organization’s recent letter co-signed by 344 organizations urging Congress to protect and strengthen Medicaid.

“Any cuts to Medicaid — whether by directly capping its federal funding or by adding red tape to make it harder for people to get their benefits — is a direct threat to the health and financial security of the 80 million people who rely on Medicaid for health insurance,” said Sophia Tripoli, Families USA’s senior director of health policy. “Make no mistake, stripping away health insurance from our nation’s families to fund tax cuts for the wealthy and big corporations is not what the American people just voted for. Voters across the political spectrum want costs to be lowered, including health care. In fact, more than 71% of voters support people getting health insurance through Medicaid, recognizing the many ways it benefits people, health care providers, and our communities.”

“Medicaid stabilizes the economy, keeps rural hospitals open and reduces the financial burden on states and the health care system,” said Tripoli. “Protecting Medicaid means children miss fewer school days due to illness, adults have less risk of falling into crippling medical debt and seniors can access the support they need to stay comfortably in their homes. Congress should stand with voters and protect Medicaid from any attempts to cut funding.”

The fact sheet comes out as a list of potential budget savings compiled by Republican House chairmen became public — including options to cut Medicaid by hundreds of billions of dollars, which would lead to massive losses of coverage and economic activity.

“If policymakers are serious about improving affordability and saving money for federal and state budgets, there is a clear agenda to make health care affordable by addressing the market failures and corporate greed that drive our nation’s health care affordability crisis — but cutting Medicaid is not it,” continued Tripoli. “Families USA will fight tooth and nail alongside our allies and partners across the country to protect Medicaid and health care for all Americans.”

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Families USA, a leading national voice for health care consumers, is dedicated to the achievement of high quality, affordable health care and improved health for all.