Trumps Budget to Cut $800 Billion From Medicaid Funding

Numerous news outlets including CNN are reporting on the massive cuts to Medicaid funding being proposed by President Trump. Some sources have estimated the cuts to total one trillion dollars. Whether the cuts total in the billions or trillions of dollars, the outcome is the same — many disabled and low-income families and individuals, including children and seniors, will suffer the consequences of President Trump’s reversal of a major campaign promise.

How Will Medicaid Cuts Impact Recipients?

The proposed cuts take into consideration the provisions of the proposed GOP health care bill that the House passed in May. According to the proposed legislation, states would no longer receive extra funds for the expansion of Medicaid. States that have already expanded Medicaid to low-income adults would have the funding that supports the expansion cut off in 2020.  It is estimated that 11 million adults benefited from the expansion of Medicaid. In addition, the proposed health care law cuts funding to states for the entire Medicaid system, including coverage for people with disabilities and low-income children and adults.

Because states rely heavily on federal funding as part of their Medicaid program, these cuts could have devastating effects for millions of people who rely on Medicaid for medical care and life-saving medications. Without the federal funding, states would need to make up the difference in state funds. States could choose to decrease or limit benefits or decrease the number of individuals who are eligible for Medicaid benefits. The negative consequences of such drastic Medicaid cuts are far-reaching, even more so than many people realize.

For example, Sen. Maggie Hassan (D) of New Hampshire pointed out that the 30 percent proposed decrease in federal funding for Medicaid impacts programs for students with disabilities. According to Sen. Hassan, if the health care bill and budget are passed, the support needed to help children with disabilities become fully integrated into the classroom could disappear. The resources of these students could be eliminated.

Medicaid Planning for Nursing Home Care

Another issue that many individuals and families may face if the cuts in Medicaid are enacted is the question of how to pay for nursing home care. Medicare does not pay for long-term nursing home care. Therefore, most families turn to Medicaid to pay for their loved one’s care. However, this option may be greatly limited depending on how states deal with such severe cuts in funding for Medicaid. This change can greatly impact Medicaid planning strategies.

Call a Michigan Medicaid Planning Attorney for More Information

Now more than every you need to take steps to prepare for your future. An estate planning attorney with experience in Medicaid planning can help you ensure that you will have the resources and funds available to take care of you regardless of what may happen.

Contact The Elder Care Firm of Christopher J. Berry, CELA 888-390-4360 or use our online contact form to request more information or schedule an appointment with our Michigan Medicaid planning lawyer.


Trump budget: $800 billion in Medicaid cuts,” MJ Lee & Tami Luhby, CNN, May 24, 2017

Trump’s proposed trillion-dollar cuts to Medicaid are a stunning reversal from one of his biggest campaign promises,” Harrison Jacobs, Business Insider, May 23, 2017

Hassan warns Trump’s proposed Medicaid cuts would hurt disabled students or downshift costs,” John DiStaso, WMUR, May 25, 2017

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