Gov. Katie Hobbs joined other Democratic governors around the country to decry cuts to federal Medicaid spending proposed by Republican lawmakers that could result in over 8 million Americans losing their health coverage.
“Medicaid is a lifeline for millions of kids, seniors, veterans and people with disabilities in our states and nationwide,” according to the letter signed by Hobbs and 22 other governors, which also criticized a proposal to cut federal spending on food assistance.
“Republicans’ proposed cuts would be disastrous — ripping away quality, affordable health care from families, forcing rural hospitals to close their doors, and causing fiscal chaos across the country,” the Democratic governors wrote.
The nonpartisan Congressional Budget Office estimated that Medicaid spending cuts unveiled by congressional Republicans over the weekend would save at least $715 billion and cause at least 8.6 million people to lose health insurance over the next decade.
The proposal is the latest version of President Donald Trump’s “big beautiful bill” that could include sweeping spending cuts to facilitate the renewal of Trump’s 2017 tax cuts that are set to expire this year.
The proposed Medicaid cuts rely on a host of changes, including new work requirements for able-bodied adults using Medicaid and restrictions on taxes that many states use to pay a significant portion of their share of Medicaid costs.
Will Humble, executive director of the Arizona Public Health Association, said AHCCCS, the state’s Medicaid agency, is already in the process of putting work requirements in place. Still, he said additional red tape associated with federal work requirement rules could affect some Arizonans.
“And that's where the savings come from,” Humble said. “It's from knocking people off not because they're not working, because the vast majority are, but because they don't know how or are unable to do the reporting.”
But Humble said the proposed rule that restricts the state’s ability to tax health care providers who treat Medicaid patients could significantly reduce the number of Arizonans covered by Medicaid.
That’s because the state uses that assessment on hospitals to pay for coverage for the hundreds of thousands of Arizonans, including those that qualify for coverage under a Medicaid expansion plan approved by state lawmakers in 2013.
Humble said it is still unclear exactly how the Republican Medicaid proposal would affect Arizona’s tax on providers but that some Arizonans would lose coverage unless the state Legislature approves other state funds to cover those costs as it grapples with falling revenues.
A spokesperson for Hobbs said her office is currently calculating the anticipated effect the Republican tax proposal would have on health insurance coverage for Arizonans.
“That’s something we are actively examining, but I do not have numbers for you yet,” spokesman Christian Slater said.
But Hobbs has long warned that substantial cuts to federal Medicaid spending could hurt the over 2 million Americans enrolled in Medicaid programs.
“I’m hopeful that our members of Congress will do the right thing and they protect that health care for those people, those lives,” she said in late April. “It will cost lives.”
So far, Arizona’s congressional delegation is split over the proposed cuts.
Rep. Andy Biggs, a far-right Republican who is now running for governor, said he supports shrinking Medicaid.
“Medicaid’s really important, because you have two basic fundamental groups,” Biggs said. “You have the original Medicaid, which is taking care of the disabled, the elderly, pregnant women and children, indigent children, right?” Biggs told rightwing television host Steve Bannon.
But Biggs indicated he wanted to roll back or restrict state Medicaid programs that expanded eligibility to more people under the Affordable Care Act in 2013. Biggs, then the Arizona Senate president, opposed that expansion, which was championed by former Republican Gov. Jan Brewer.
“Medicaid shouldn’t be America’s fastest-growing program — but able-bodied Americans are taking advantage,” Biggs wrote on social media.
Other Republicans have said they aren’t on board with broad Medicaid cuts, though.
Rep. Juan Ciscomani, a Republican representing a Tucson-area district, signed a letter alongside a handful of other GOP lawmakers telling House Speaker Mike Johnson they support Medicaid reforms but “cannot and will not support a final reconciliation bill that includes any reduction in Medicaid coverage for vulnerable populations.”
However, critics pointed out that Ciscomani already voted in favor of a budget resolution that paves the way for Medicaid cuts.
Meanwhile, Democratic Sens. Mark Kelly and Ruben Gallego signed a letter alongside other Senate Democrats criticizing the Republican budget plan.
“Republican leaders claim they have no plans to eliminate essential services, but tens of billions in catastrophic cuts to these programs appeared on Republicans’ published wish list, alongside cuts to Medicaid and SNAP,” they wrote.
Gallego also announced he is supporting legislation to preserve Medicaid solvency by requiring taxpayers earning over $400,000 per year to contribute more to the program.
EDITOR'S NOTE: The story has been updated to clarify Will Humble's comments about the proposed Medicaid changes.
