How Medicaid Cuts Hurt People with Disabilities 

Updated: 6 days ago
Community Access and InclusionHealthcarePublic Policy
medicaid

Medicaid is the largest publicly funded program that supports people with disabilities. Any cut to Medicaid will affect people with disabilities. 

Medicaid pays for Medicaid Waivers including DSPD services:  

  • Community Supports Waiver, Community Transitions Waiver, Limited Supports Waiver, Brain Injury Waiver, Physical Disabilities Waiver (all through DSPD).  
  • Medically Complex Children’s Waiver and the Technology Dependent Waiver.  
  • New Choices Waiver (Utah’s nursing home diversion waiver for people with physical disabilities) and the Aging Waiver. 

Medicaid has mandatory and optional services. Medicaid waivers, like the services through DSPD, are optional services. If the amount of Medicaid funding decreases, states have to cut optional services first. 

Medicaid also covers many other services for people with disabilities 

  • Medicaid funds school-based services for students with disabilities. 
  • People who are waiting for the waiver receive Medicaid for their health care.  
  • People with disabilities who do not meet criteria for a waiver receive their health care through Medicaid.  
  • People on the waivers receive their health care through traditional Medicaid. 
  • Children with disabilities on traditional Medicaid can receive therapies including physical therapy (PT), occupational therapy (OT), speech therapy and autism therapies. 

The federal house budget resolution proposes $880 billion dollars in cuts to Medicaid. This could be done in a variety of ways: 

Per capita caps: right now the federal government matches what the state government spends. A per capita cap limits the amount the federal government will spend by giving states a set amount per person enrolled in Medicaid. States will have to make up the difference. 

Block Grants: states would be given a set amount of money, when costs exceed the grant, states have to cut services or raise taxes to make up the difference. 

FMAP changes: the FMAP is the federal match rate given to states. There are various proposals that would decrease the amount of money that the federal government would match to state dollars. 

Work requirements: most proposals exempt caregivers and people with disabilities who have SSI or SSDI, but proving an exemption can be difficult. Often people who have disabilities have a difficult time accessing SSI and SSDI, thereby making it difficult to demonstrate that they shouldn’t be subject to work requirements. Even if work requirements don’t apply to you or your loved one directly, implementing this program has administrative costs and decreases the amount of Medicaid dollars in the system as a whole which hurts everyone receiving Medicaid. 

What can I do?  

Share stories with state and local leaders about how Medicaid has helped you or your loved one. 

Follow our social media and stay posted for action alerts when specific plans to cut Medicaid are proposed. 

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