Recently, the U.S. House of Representatives passed a budget bill that includes deep cuts to Medicaid. Many in the disability community have raised concerns about the devastating impacts this legislation would have on individuals and the healthcare system. In response, some people have spread misinformation to justify these cuts. The Minnesota Council on Disability (MCD) is working to inform the public and urge action to protect Medicaid (known as Medical Assistance in Minnesota). We recognize that not everyone is a policy expert and that it can be overwhelming to hear conflicting arguments and not know what to believe.
This fact sheet is designed to help people recognize and respond to misleading claims about Medicaid—a lifeline for many in the disability community.
Claim #1: Eligible recipients will not lose coverage because of changes to Medicaid
False. The Congressional Budget Office (CBO)—a nonpartisan government agency that analyzes legislation—found that about 13.7 million Americans, including people with disabilities, could lose health coverage under the current version of the bill. Many of the bill’s provisions create administrative red tape that makes it hard for eligible recipients to keep their coverage.
Claim #2: The Medicaid cuts are targeting waste, fraud, and abuse
False. According to government reports, fraud within the Medicaid program is minimal. When it does occur, it is often committed by providers, not recipients. State and federal governments already have tools to prevent fraud that do not require cuts. These deep cuts are primarily designed to reduce enrollment and shift costs to states. They would do little to address fraud but would cause significant harm to millions of Americans, including people with disabilities.
Claim #3: People with disabilities and other vulnerable groups will not be affected by cuts to Medicaid
False. Any cuts to Medicaid would disproportionately affect people with disabilities. When federal Medicaid funding is reduced, states are forced to make up the difference. Budget shortfalls mean states must make difficult decisions about which services to continue. Home and community-based services (HCBS), which make up 86% of state-level optional Medicaid spending, are likely to be the first to face cuts. Without HCBS, people with disabilities could lose the ability to live independently and be forced into institutional settings.
Claim #4: Work requirements are a reasonable policy to target individuals who are gaming the system
False. Most people on Medicaid are already working. Those who are not are often caregivers, students, or individuals with disabilities who cannot work. Work reporting requirements do not improve employment outcomes. Instead, they create red tape that leads to both increased administrative costs and loss of coverage for thousands. Even with exemptions, people with disabilities can still fall through the cracks. For example, some individuals may be unable to work due to a disability but have not yet received a formal disability determination. Without official certification, they would not be exempt from work requirements and could be wrongly removed from coverage.
Claim #5: Only undocumented immigrants would be taken off Medicaid
False. Undocumented immigrants are not eligible for Medicaid or other federal programs. In emergency situations, hospitals may receive limited reimbursement for providing care, which represents a very small share of Medicaid spending. Some states use their own funds to offer healthcare to undocumented immigrants. The current bill would penalize these states for doing so, which could strain their budgets and force them to make difficult choices. U.S. citizens, especially those covered under Medicaid expansion, could lose coverage if states respond by cutting services or eliminating the expansion altogether.
Additional Medicaid Resources
This fact sheet is not intended to provide in-depth information about Medicaid. To learn more, track MCD’s policy updates, explore educational resources, and find out how you can take action, visit: Understanding Federal Medicaid and How You Can Protect It.
You can also subscribe to our mailings for Medicaid Action Alerts and follow us on Facebook.