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What $1 Trillion in Medicaid Cuts Means for Washington Physicians and Patients

By Nancy L. Belcher, PhD, MPA | CEO, KCMS

Congress passed the largest federal healthcare cuts in U.S. history—nearly $1 trillion over the next decade, much of it targeting Medicaid.  These changes are being called the most significant shift in healthcare policy since the Affordable Care Act. For physicians, health systems, and public health advocates in WA State, these changes demand urgent attention.
Medicaid: The Safety Net for 1 in 4 Americans
Medicaid is often seen as a program for the very poor, but its reach goes beyond that; it:
  • Covers 42% of all US births
  • Funds long-term care for millions of seniors
  • Provides for children with special needs, chronically ill adults, and people with disabilities
  • Keeps rural and safety-net hospitals financially afloat 
In WA State, more than 2.1M residents - over 1 in 4 people - rely on Medicaid for health coverage.
What’s Changing?
These cuts were not passed through the usual budget process, but through reconciliation—a fast-track legislative tool that allows budget-related legislation, including nearly $1 trillion in Medicaid cuts, to pass with fewer votes. While the Medicaid cuts don’t eliminate the program outright, they make it harder to stay enrolled and reduce federal support for states. Key provisions include:
  • New work requirements for eligibility, even though most Medicaid recipients work or can’t work due to disability or caregiving
  • Mandate frequent eligibility verification, increasing paperwork and coverage gaps
  • Cut federal matching funds—hitting Medicaid expansion states like WA  hardest
  • Limits on how states can generate or supplement matching funds 
Why This Matters for Washington State
Washington's health system is built on partnerships between state investment and federal support, and these cuts threaten to destabilize that balance. The impact will fall hardest on our vulnerable patients and ripple through clinics and hospitals, especially in areas like:
  • Safety-net and community health centers
  • Critical Access and rural hospitals
  • Physicians in primary care, geriatrics, pediatrics, and behavioral health
This Quiet Bureaucratic Shift Is Setting the Stage 
The impact is real and measurable. An estimated 11 million Americans are expected to lose coverage over the next several years, and hundreds of hospitals, particularly in rural and underserved areas, are at risk of closure. Washington physicians will likely see:
  • More uninsured patients in our EDs and community clinics
  • Nursing home closures as Medicaid funding dries up
  • Hospital cutbacks and staff reductions, especially in already-stretched rural areas
  • Rising medical debt and delayed care for conditions that should be preventable 
  • Greater strain on an already stretched system
  • A wider health equity gap, with underserved communities facing greater barriers
So What Can You Do?
The changes are phased in gradually, with much of the impact delayed until 2026–2028. That gives us some time. But only if we act now. Here’s what we can do:
  • Use our voice to explain the real impact of these policies and the lived experiences of patients.
  • Educate patients—especially those relying on Medicaid—about new requirements and renewal timeline.
  • Join KCMS (or renew) to strengthen organized medicines' response and advocacy. Join or renew HERE.
  • Engage with the KCMS Delegate Council and help shape policy that defends your profession. Write or co-author a resolution, or lend your name and support to one of ours, info@kcmsociety.org 
  • Advocate for Medicaid: Advocate for transparency in how WA state will implement these changes. Whether it’s writing op-eds, testifying, or briefing lawmakers, KCMS will support you to share your perspective.
  • Stay connected and 'like' KCMS's social media platforms and activate your network. Use your platform—social media, peer conversations, rounds—to ensure other doctors understand what’s coming and how to speak up.
    👉 Follow us:Facebook | X (Twitter) | Instagram | LinkedIn 👉
🎓 Support the Next Generation of Physicians
Make a lasting impact by donating to the KCMS Community Foundation grant fund, a 501(c)(3) charitable organization. Your gift is tax-deductible and helps build a resilient, well-trained healthcare workforce. KCMS Community Foundation grant fund.
Bottom Line - We Are Stronger Together
These policy shifts may feel overwhelming, but KCMS is your professional home. Together, through collective action and organized advocacy, we can fight for a healthcare system that protects patients and supports those who care for them. 

KCMS Board Member Spotlight:

Dr. Mark Levy Publishes in JAMA

We recognize longtime KCMS member Dr. Mark Robinson Levy, who was recently published in JAMA. In a timely commentary, Dr. Levy explores the role of private equity in healthcare and proposes a reframing of hospitals as public utilities.
Please note:
The views expressed in the commentary below are Dr. Levy’s own and do not necessarily represent the official position of the King County Medical Society
.

Read his full commentary, reprinted from JAMA:

Ownership of Americans’ Health Care
By Mark Robinson Levy, MD
Published in JAMA, July 10, 2025
Original article link (doi:10.1001/jama.2025.7482)

To the Editor
In their recent Viewpoint, “Who Should Own Americans’ Health Care?,” Dr Himmelstein and colleagues discuss the recent collapse of the Steward Health Care system after its takeover by the private equity firm Cerberus. They suggest a number of potential reforms to “disconnect care from commerce.” Ultimately they seem to land on “refashioning ownership to vest governance” in locally accountable, regulated boards. Do the authors think it is time to consider all hospitals public utilities and to regulate them as such?

Public utilities are organizations that provide essential services (water, power, etc), often have some type of monopoly, and have traditionally been regulated by government. Such regulation ensures that consumers are protected from overcharges and that the service provided is continuously available and safe and serves everyone equitably. Historically, hospitals have not been considered utilities, but consider this: increasingly, hospital systems are monopolistic and operate 24/7 like other utilities. They provide essential services, and there is a strong public interest in maintaining access to those services. Given the high level of consumer medical debt and often resultant bankruptcy, there is compelling interest in the cost of the provided service as well.

By 2012, 19% of metropolitan areas in this country were served by just 1 hospital system, and today, nearly half of all metropolitan areas have a single hospital whose market share is more than 70%. While not strictly a monopoly, this level of concentration affects health care costs and quality of care.

In areas that have highly concentrated markets, for example, health care costs average 12% higher than in more competitive environments. Patient satisfaction has been shown to decline, access for patients insured by Medicaid has decreased, and most consolidation of market share, rather than improving care, has had an inconclusive or a negative impact on care.

Failures like the one at Steward lead to adverse patient outcomes. The conflict between financial ambition and clinical mission often leads to the loss of essential services (like obstetrical care, as pointed out by the Viewpoint authors) and skews availability of care toward elective care and away from critically important but less lucrative services that improve community health.

—Mark Robinson Levy, MD
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