The $1 trillion cuts to Medicaid detailed in President Trump's budget bill will significantly impact Alameda Health System, which relies on Medicaid for 70-80% of its funding. AHS anticipates a $100 million budget deficit by 2030 due to these cuts. The HR1 budget offsets tax cuts by reducing spending on social services such as Medicaid. As a result, nearly 243,000 Medicaid beneficiaries in Alameda County may lose coverage due to stricter eligibility criteria. These changes will destabilize care and negatively affect health outcomes for vulnerable populations, especially those relying on Medicaid services.
We had the best-case scenario, the most likely scenario, and then what we were facetiously calling the 'nuclear option,' Jackson said. 'I hate to say it, but it looks like the nuclear option is the one that we landed on.'
An AHS preliminary analysis estimates a $100 million annual budget deficit when the full extent of cuts is implemented by 2030, jeopardizing health outcomes, destabilizing care for the poor, and undermining long-term community health, Jackson said.
Medicaid applicants between the ages of 19-64 will also have to prove they are working, studying, or fall into another exception every six months to keep their Medicaid coverage.
About 80% of AHS's patients are Medicaid recipients like Loretta Medellin, a former school teacher who was forced to take permanent disability when a blister became infected and began to consume her leg.
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