The Devastating Consequences of the House Budget Bill
The proposed House budget bill has sparked widespread concern over its potential to strip health insurance from approximately 15 million individuals and inflict lasting damage on local economies across the United States. Recent updates from the Congressional Budget Office (CBO) suggest that the number of people losing health insurance could be as high as 16 million.
Slashing Programs for Vulnerable Families
House Republicans have chosen to offset the cost of tax cuts for the wealthiest households by slashing programs that support vulnerable families, including Medicaid and subsidies that enable people to purchase health insurance through the Affordable Care Act (ACA). This move effectively transfers income from those who need it most to the richest individuals in the country. The annual cuts to Medicaid are expected to average over $70 billion in the coming years, a figure that mirrors the amount millionaires and billionaires will gain in tax cuts annually.
Economic Impact of Health Care Spending Cuts
The health care spending cuts outlined in the bill will directly lead to millions losing their health insurance coverage. The CBO initially estimated that 13.7 million people would lose coverage, with more precise estimates expected to reveal a higher number. The Center on Budget and Policy Priorities has estimated that at least 15 million people will lose their health insurance due to these cuts.
Moreover, the cuts to Medicaid will have a detrimental effect on local economies and workers nationwide. Even during periods of low national unemployment, many local economies struggle with higher county unemployment rates and are less equipped to withstand significant spending shocks, such as those resulting from Medicaid cutbacks. It is estimated that roughly 27 million workers are employed in these weaker local economies, and Medicaid cuts could depress local spending enough to result in the loss of 850,000 jobs.
Flaws in the Argument for Work Requirements
Proponents of the bill argue that it demands able-bodied adults receiving Medicaid to work. However, this argument falls apart upon closer examination of the bill’s details and its ripple effects. The bill’s cuts extend far beyond work requirements for able-bodied adults, with the House bill cutting roughly $715 billion from Medicaid over the next decade. The bill also fails to extend premium tax credits that made insurance more affordable through the ACA, constituting an additional $335 billion cut over the next decade.
Consequences of Removing Health Insurance from Millions
Removing health insurance from 15 million people will not only harm those who lose coverage but also have broader consequences. Health care providers and hospitals will be forced to downsize and close, particularly in rural areas, leading to reduced access to care and significant disruptions to local economies. State and local governments will bear the brunt of uncompensated care costs, which could lead to increased health care costs for everyone.
Health Care as a Key Engine of Local Economies
The health care sector is a significant employer in the United States, with 18 million workers. The proposed cuts will lead to health care providers losing $770 billion in payments over the next decade, inevitably forcing shutdowns and cutbacks, especially in rural regions. This will not only affect access to health care but also have a devastating impact on local economies that rely heavily on health care spending.
In conclusion, the House budget bill’s cuts to Medicaid and other health services will have far-reaching and devastating consequences, not only for the 15 million who will lose health insurance but also for the broader economy and nearly everyone else in the United States.
