With the House of Representatives proposing to set a target of reducing Medicaid spending by $880 billion over the next ten years, a reasonable question is “How would states do that?”

In a new report, KFF, a non-profit health policy research, polling, and news organization, evaluates the options for how states might respond to such cuts.

In its analysis, KFF evaluates how significantly $880 billion in Medicaid cuts might affect states’ budgets and then turns to the question of how states might offset those lost federal funds.  Among the options it evaluates are:

  • increasing taxes to raise some or all the lost federal funding
  • reducing spending for other state programs, including education – the largest category of spending for state governments
  • reducing Medicaid eligibility
  • reducing Medicaid benefits
  • paying providers less

Learn more about the questions KFF considered, how it performed its analysis, and the conclusions its research yielded in its report “Putting $880 Billion in Potential Federal Medicaid Cuts in Context of State Budgets and Coverage.”