Trump's Trials - As Congress debates Medicaid cuts, a look at the potential impacts
Episode Date: May 20, 2025Health economist Lindsay Allen, assistant professor at Northwestern University's Feinberg School of Medicine, speaks to NPR's A Martinez about the impact of proposed cuts to Medicaid being debated in ...Congress. Support NPR and hear every episode of Trump's Terms sponsor-free with NPR+. Sign up at plus.npr.org.Learn more about sponsor message choices: podcastchoices.com/adchoicesNPR Privacy Policy
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One of the most contentious parts of the budget bill in Congress is cuts to Medicaid.
That's the public health insurance program for Americans who are disabled or have limited
income.
To understand the numbers and what they mean, A. Martina spoke with health economist Lindsay
Allen at Northwestern University's Feinberg School of Medicine. So Lindsay, the Congressional Budget
Office estimates a savings of about 625 billion dollars to the national deficit. The office also
thinks that up to 10.3 million people could lose coverage over a decade. Is this gamble even worthwhile?
I don't know that I can say the gamble is worthwhile because the CBO estimates actually
rely on some pretty big assumptions. One of them is assuming that the states are going
to somehow replace the lost federal funding. And that's something that many of the states
just can't or won't do.
So in practice, the cost burden is just shifting to states
and local governments and hospitals and families.
And we suspect that more people are gonna lose coverage
than the CDO estimated.
So ultimately you're saying someone has to pay.
Absolutely.
It just shifts the burden of paying for
that care to someone else. Yeah. So, let's take a step back
for a second. Uh Bradley, what does it mean to Medicaid
recipients to lose coverage? What's the impact on their
health and also maybe their their wallet? Yeah, absolutely.
So, Medicaid is a health and economic engine and so, when
you receive Medicaid,
you end up being able to get care for conditions
that need treating.
So if you lose Medicaid,
you don't end up actually having that need for care go away.
Yeah, okay, so let's dig into some
of the specific proposals here.
One is to require able-bodied adults without dependents
to prove they're working or training
for a job as a condition to secure Medicaid coverage.
If this requirement, Lindsay, goes through, how could that impact coverage?
Well, that sounds wonderful in theory, but something like 91% of the individuals that
this bill would be targeting with work requirements are caring for family, they're in school, or they're dealing with health issues that aren't always visible or formally diagnosed.
So the policy is not really changing behavior, it's just stripping coverage from people
who are already contributing in ways that the system just doesn't recognize.
I happened to be in Georgia at the time when Governor Brian Kemp was really,
really pushing work requirement for Medicaid coverage, 80 hours of work or volunteer activities.
I know that Arkansas was the first state to do it back in 2018.
How has that turned out for these states?
What we've seen, so especially in Arkansas and now more recently Georgia, is that the
coverage loss is happening not
because people aren't eligible but because they get stuck in paperwork. So
the red tape is dense and confusing especially for people who are juggling
multiple jobs or they're caregiving or they're dealing with their health issues.
So what would be some other ways to streamline Medicaid and maybe better
serve its most vulnerable beneficiaries without drastically reducing access to health care?
Sure. So if we want to cut Medicaid costs without hurting people, the data point us
toward things like reducing prescription drug prices or cracking down on high cost, low
value care or investing in preventive services that are what actually lower long-term costs, unlike
policies that just cut people off.
That's health economist Lindsay Allen.
She's an assistant professor at Northwestern University's Feinberg School of Medicine.
Lindsay, thank you.
Thank you, A.
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