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Proposed Medicaid cuts threaten rural PA residents, hospitals

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Tuesday, January 21, 2025   

Federal safety net programs face major potential cuts as the Trump administration pursues budget reductions, with a House GOP proposal suggesting $2.5 trillion in cuts to Medicaid.

Three million Pennsylvanians are insured through Medicaid, and a Georgetown University report showed rural residents rely on Medicaid more than people in metro areas.

Becky Ludwick, vice president of public policy for Pennsylvania Partnerships for Children, said Medicaid is vital in providing health care for the state, which ranks fifth in the nation for its rural population.

"In looking at the number of individuals who rely on Medicaid for their health care, we looked at the number of children first," Ludwick explained. "More than 37% of children in Pennsylvania small towns and rural areas rely on Medicaid for their coverage."

The report showed more than 1.7 million people live in rural Pennsylvania and Ludwick noted rural adults rely on Medicaid at a higher rate than their urban counterparts. The report found cuts would also affect the economies of rural communities, where hospitals are often a major employer.

Ludwick emphasized Medicaid has been crucial in lowering the uninsured rate for children, so less federal funding could jeopardize coverage. She pointed out having Medicaid means kids can get the health care and preventive services their families wouldn't otherwise be able to afford.

"They have access to developmental screenings, to vision care, dental care, in addition to access to medication and other needs that they would have from a medical perspective, both for their physical and their mental health," Ludwick added.

Joan Alker, executive director of the Georgetown University Center for Children and Families, said it is important for policymakers to realize programs like Medicaid are not government waste. They keep people healthy so they can work and create better health outcomes for kids.

"In the long term, it's a much better investment of taxpayer dollars," Alker contended. "Because it'll pay dividends to make sure that these families are getting the care they need."

The report showed rural residents already tend to have worse health outcomes, including higher maternal and infant mortality rates. Alker argued it is another reason Medicaid coverage is important.

Disclosure: The Georgetown University Center for Children and Families contributes to our fund for reporting on Children's Issues, and Health Issues. If you would like to help support news in the public interest, click here.


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