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Missoula City Council members caution deep impacts if Congress cuts Medicaid

Medicaid currently provides health coverage to 70 million people, and cuts to the program could have deep impacts.
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MISSOULA — Several members of the Missoula City Council on Monday joined a number of congressional leaders in warning that proposed cuts to Medicaid at the federal level would ripple down the healthcare chain and have devastating financial impacts at the local level.

Congress is considering a federal budget that would cut roughly $880 billion from Medicaid over 10 years. The program currently provides health coverage to 70 million people, and cuts to the program could have deep impacts.

“The state Legislature reauthorized Medicaid expansion, which is a big deal,” said council member Mike Nugent. “But I really think it's important that people pay attention to what's happening at the federal level right now, because nothing that we debate (at City Council) when it comes to providing services to our community and helping individuals who may need a little extra help will get any easier if the outlined cuts to Medicaid at the federal level come to fruition.”

The Montana Legislature reauthorized and the governor signed Medicaid expansion this session, but with a number of sideboards. Among them, Montana is one of nine states with a law already on the books that would automatically roll back Medicaid expansion if the federal contribution dips.

The federal government currently covers around 90% of Medicaid costs, while the states pay 10% as a local match. In Montana, that equates roughly $100 million. If Congress follow through with the proposed cuts, states would have to come up with more than $625 billion over the next decade to maintain coverage.

The trickle-down impacts and the potential budget disaster have some officials concerned.

“We have a (budget) surplus at the state, and we do not at the city level,” said council member Stacy Anderson. “We're constantly being asked to do more and more, which is beyond what the scope of municipal government was designed to do. Those pressures will only get greater and make it harder and harder for us to deliver core services.”