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County officials warn HR 1 will cut Medicaid funding, urge early mitigation
Summary
County consultants and staff told the Health and Hospital Committee that HR 1’s changes to Medicaid, provider taxes and state-directed payments pose near- and longer-term budget risks; the committee received the verbal report and asked staff to return with follow-ups.
Santa Clara County officials told the Health and Hospital Committee that federal legislation known as HR 1 will significantly reduce Medicaid support for public hospitals and other providers and that early mitigation planning is needed.
Consultant Bert Margolin, of the Margolin Group, told the committee, “Since the last health and hospital committee meeting, HR 1 became law, and we are now facing the harsh reality of the largest reduction in Medicaid funding in the history of the program.” He cited a Congressional Budget Office estimate that as many as 16,000,000 people nationwide could lose coverage and described three categories of change that particularly affect counties: work requirements, a cap/changes on state-directed payments, and limits on provider taxes that reduce state ability to draw down federal matching funds.
Why it matters: County staff…
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