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Spotlight on the Impact of the American Health Care Act on Total Medicaid Spending in Eight States

These new fact sheets show the depth of Medicaid cuts proposed by the AHCA in Alaska, Arizona, Colorado, Iowa, Nevada, Ohio, Tennessee, and West Virginia

For more than 50 years, the Medicaid program has served as a critical safety net for millions of people who deplete their life savings and turn to Medicaid for assistance as their ability to care for themselves declines. The American Health Care Act (AHCA) threatens the Medicaid program by limiting future federal funding that states can receive to provide needed health care and long-term services and supports (LTSS). Specifically, the bill repeals the Medicaid expansion and implements a capped financing model for states.

New fact sheets from the AARP Public Policy Institute illustrates the depth of the cuts in eight states and shows the implications of the AHCA for Medicaid funding and enrollment.

 

 

By Fiscal Year 2026, these eight states stand to lose more than $100 billion in total Medicaid funding:

State

Total Cut to Medicaid (Federal and State), FY2020-2026

Alaska

$2.8 billion

Arizona

$25.8 billion

Colorado

$15.0 billion

Iowa

$4.3 billion

Nevada

$9.5 billion

Ohio

$34.8 billion

Tennessee

$2.9 billion

West Virginia

$8.9 billion

Total Cut to these Eight States

$104 billion

 

By Fiscal Year 2026, more than 1.9 million people in these eight states could lose their Medicaid coverage under the bill:

State

Total Loss of Medicaid Coverage, FY2026

Alaska

32,000

Arizona

537,000

Colorado

314,000

Iowa

66,000

Nevada

210,000

Ohio

581,000

Tennessee

63,000

West Virginia

158,000

Total Coverage Loss in these Eight States

1,961,000

The fact sheets include three new data points illustrating the extent of AHCA’s Medicaid financing cuts:

  • The annual percentage cut to total (federal and state) Medicaid funding through fiscal year (FY) 2026,
  • The dollar amount of the cuts in FY2026, and
  • The number of beneficiaries who would have to lose coverage by FY2026 in order for those remaining to maintain their current level of service

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