Washington stands to lose approximately $2 billion in Medicaid funding

SEATTLE - At a press conference Thursday at Harborview Medical Center, Governor Bob Ferguson joined health care workers and hospital leaders to urge Congress to abandon its proposed cuts to safety net services, including Medicaid. Nearly 2 million Washingtonians - roughly 1 in 5 - are enrolled in Apple Health, the state’s Medicaid program, including 800,000 children.

A bill passed in the middle of the night by Republicans in the U.S. House of Representatives makes nearly $1 trillion in cuts to critical safety net programs, including $700 billion in Medicaid cuts. The proposal now moves to the Senate.

Medicaid is a critical partnership between federal and state governments. Washington stands to lose approximately $2 billion in Medicaid funding over the next four years. The bill also threatens access to health care and food stamps.

The proposed Medicaid cuts aim to reduce federal spending by slashing federal reimbursement for hospitals, nursing homes and providers. Medicaid is a foundational pillar of funding for Washington’s healthcare system. If Congress cuts Medicaid reimbursement, it impacts access to care for all Washingtonians, not just Medicaid enrollees.

“Medicaid is a lifeline to affordable, quality healthcare — and these cuts would impact everyone in Washington who relies on it,” said Governor Ferguson. “Fewer services, fewer doctors and fewer clinics mean Washingtonians in every corner of the state face reduced access to health care. It is both cruel and catastrophic.”

Medicaid in Washington

Washington spends $21 billion on Medicaid annually. Approximately $8 billion of that is paid for by the state, and $13 billion is paid for by the federal government.

More than 105,000 Washingtonians depend on Medicaid for long-term care, and the program covers 3 in 5 nursing home residents and 3 in 8 people with disabilities. It’s the largest payer for opioid use disorder treatment in the state. And more than 45 percent of births in the state are covered by Medicaid — in rural Washington, that number goes up to more than 70 percent.

Impacts of Medicaid cuts in Washington

The legislation that passed the House will:

• Cut federal Medicaid funds to Washington by approximately $2 billion over the next four years.
• Cause approximately 200,000 Washingtonians to lose their health care coverage at the end of 2026.
• Cause hospitals and nursing homes to close. Many are already struggling, and these cuts will push some into closure.

Cuts to other safety net programs

Congress’ proposed cuts go beyond Medicaid, targeting other critical federal programs that support low-income Washingtonians, including the Supplemental Nutrition Assistance Program, or SNAP, commonly known as food stamps. The legislation cuts SNAP by $267 billion over 10 years, shifting those costs to the states. Those cuts would shift an estimated $300 million in costs to Washington state annually.