Key Takeaways
- Nearly 71 million Americans are covered by Medicaid, yet the program is expected to see nearly $1 trillion in cuts over the next decade.
- States with a larger proportion of Medicaid enrollees as a share of their population will be disproportionately impacted.
- California, New Mexico, New York, and Louisiana have the highest percentages of their populations covered by Medicaid, but Washington, D.C.’s share is higher than that of any state.
Nearly 71 million Americans are covered by Medicaid, and in some states, a third or more of the population relies on the program.
Yet, the federal government is scheduled to make nearly $1 trillion in cuts to the health insurance program for lower-income Americans over the next decade.
The “One Big, Beautiful Bill” Act includes several new provisions to cut federal spending on Medicaid and change eligibility requirements to reduce enrollment in the program. As a result, the Center on Budget and Policy Priorities estimates up to roughly 15 million Americans are at risk of losing coverage.
Every state will be affected in some way by these changes, but states that have a larger proportion of Medicaid enrollees as a share of their population will be disproportionately impacted.
California, New Mexico, New York, and Louisiana are the states with the highest percentage of their populations covered by Medicaid and the Children’s Health Insurance Program, with more than 32% of each of their populations enrolled in the program. Washington, D.C.’s share is even higher: 36% of those living in the nation’s capital are enrolled in Medicaid or CHIP.
California Gov. Gavin Newsom previously said that up to 3.4 million of his state’s residents could lose coverage due to new Medicaid work requirements and ramped up eligibility verifications.
In other words, the number of Californians set to lose coverage is greater than the total population of 19 different states. Only five states, including California, have three million or more total Medicaid enrollees.
New York Gov. Kathy Hochul said she expects 1.3 million residents will lose their Medicaid coverage. New Mexico Gov. Michelle Lujan Grisham said last month that her state is estimated to lose over $12 billion over the next decade due to Medicaid cuts. She said that money would be critical support to the state and those who depend on the program for health care coverage.
States with a lower proportion of enrollees will still experience harsh impacts due to the program cuts and changes, but not to the same extent as other states.
“States like Utah, Texas, and Wyoming have fewer enrollees as a share of the population, so stand to see fewer overall cuts,” said senior economist at Oxford Economics Barbara Denham.