Donald Trump, the President of the United States, is pushing for a significant budget cut to the public health insurance program 'Medicaid,' raising concerns about healthcare gaps across the United States. Some hospitals are already considering reducing programs that have been operated with Medicaid funding.
On the 17th (local time), Bloomberg News reported, citing a report from the global investment bank Barclays, that if the Trump administration cuts Medicaid funding by up to $1 trillion (approximately 139.2 trillion won), about 11.8 million Americans will lose healthcare coverage.
According to the report, the impact of the budget cuts is expected to be particularly pronounced in 15 states, including ▲Louisiana, ▲Nevada, and ▲California, where the reliance on Medicaid and the proportion of vulnerable populations are high, indicating substantial losses. Additionally, states like ▲Arizona, ▲Kentucky, ▲Colorado, and ▲New York are also included in the direct impact zone.
Medicaid is the largest healthcare welfare program in the United States, funded jointly by the federal government and State Governments, accounting for a significant portion of state budgets. This program, essential for vulnerable populations such as low-income individuals, people with disabilities, pregnant women, and children, has played a pivotal role in supporting local economies and healthcare infrastructure. According to the U.S. Centers for Medicare & Medicaid Services, Medicaid covers about 19% of hospital expenditures.
In reality, the healthcare situation in various regions is already in a state of emergency. For instance, Grady Memorial Hospital in Atlanta, Georgia, has been advancing key public healthcare initiatives such as expanding outpatient services, increasing cancer screening rates, and opening outpatient clinics with Medicaid funds since the COVID-19 pandemic. However, they indicate that maintaining these initiatives will become increasingly difficult with budget cuts. Phoenix Children's Hospital in Arizona also relies on Medicaid for about 85% of its revenue, making operational difficulties unavoidable.
In rural areas, Medicaid is virtually the only source of public healthcare funding, and there are concerns that the situation will be severely impacted by existing shortages of healthcare staff and declining profitability due to inflation.
A hospital official noted, "If preventive healthcare programs like early cancer diagnostic programs disappear, healthcare costs will inevitably rise in the long run," and added, "Hospitals will start considering cuts to essential services such as obstetric care and behavioral therapy."
Mikhail Fox, a researcher at Barclays who authored the report, said, "How much state governments can compensate for the reduced federal support with their resources will be crucial," and analyzed that "most states will likely have no choice but to make austerity decisions through tax increases or reallocations from general funds."