Arizona opinion: What Medicaid cuts would mean to state's healthcare

and analysis of the writers:

The past several weeks have seen a flurry of federal actions including proposed funding cuts to federal grants and loans. Arizona hospitals and health care providers have been watching closely.

Before rescinding the Office of Management and Budget memo regarding the proposed freeze on certain federal grants and loans, the White House clarified that Medicaid, referred to as the Arizona Health Care Cost Containment System, or AHCCCS, was never intended to be impacted by the action.

This clarification is important to all Arizonans. However, these actions combined with Congress’s proposed federal funding cuts have raised questions about what a loss or reduction in AHCCCS coverage would mean for Arizona.

AHCCCS provides essential health care for more than two million Arizona residents, including children, the elderly, and individuals with physical, intellectual and cognitive disabilities.

Moreover, it is foundational to the health care ecosystem of our state. A reduction in AHCCCS funding would translate to a loss in health care coverage for over 700,000 Arizonans. Further, it would deeply impact the entire Arizona health care system; the negative effect is not limited to those with AHCCCS coverage.

If federal funding for AHCCCS is cut, Arizona lawmakers have two choices: (1) reduce or eliminate coverage for the 700,000 Arizonans or (2) find up to $1.5-$2 billion in additional state funds to offset cost shift. Finding billions of dollars can only happen through budget cuts or tax increases.

Arizona hospitals want people to receive the right care at the right time, and a crucial part of this is maintaining health care coverage. The decision to cut coverage for 700,000 people not only impacts our patients but also our friends, family and neighbors.

We have seen the devastating impacts of a federal cut in funding before. In 2011, AHCCCS froze enrollment for certain groups due to state budget constraints and changes in federal health care laws. This freeze lasted two years, ending in 2013, during which time 156,722 individuals lost their health care coverage. The consequences for those with chronic health conditions were severe, as their health deteriorated without necessary care.

Across Arizona, hospitals are a community hub. They are often the main access point for health care services and the largest employer. Patients losing access to health care coverage will be catastrophic for thousands of people. In addition, the lost revenue resulting from people not having health insurance coverage and forgoing medical care would force hospitals to reduce services for patients and cut jobs. This seismic economic action will cause budgetary challenges and substantial economic loss while destabilizing our state’s health care system.

We must act now to prevent this from happening again. We all have a responsibility to ensure a better future for Arizona patients and our entire health care system.

If faced with these very important decisions, the Arizona Hospital and Healthcare Association would advise policymakers to ensure the decisions made do not harm the physical health of its citizens or negatively impact the state’s economy.