New Mexico Sun

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Dana Flannery Medical Assistance Division Division Director | Official Website

Medicaid cuts threaten rural healthcare services in New Mexico

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H.R. 1, a federal reconciliation bill, has been passed into law, leading to significant Medicaid funding cuts that could impact rural communities across the United States. New Mexico, where nearly 40% of the population is enrolled in Medicaid, serves as a stark example of the potential consequences.

The cuts are expected to affect not only Medicaid recipients but also rural hospitals and local economies. According to New Mexico Medicaid’s Chief Medical Officer, these reductions will have far-reaching effects on health care services and employment in rural areas.

One concern is the added cost-sharing burden on patients. An older man with diabetes relies on both Medicare and Medicaid for his medication costs. With potential copays reaching $35 under the new legislation, he may face difficult choices between essential needs like groceries and medicine.

The bill also threatens New Mexico's Healthcare Delivery and Access program, which provides crucial funding for hospitals. This could lead to the closure of six to eight rural hospitals within 18 months, affecting thousands of jobs and access to medical care for residents.

Additionally, approximately 254,000 Medicaid members would be subject to new work requirements under H.R. 1. Up to 89,000 New Mexicans might lose coverage due to these stipulations, which do not account for barriers such as job scarcity or caregiving responsibilities.

A patient’s daughter who left her job to care for her mother with Alzheimer's faces losing her Medicaid coverage unless she returns to work—a challenging scenario given her caregiving duties.

The passage of H.R. 1 raises concerns about its impact on vulnerable populations and healthcare infrastructure in rural areas. The need for collaboration between federal and state governments is emphasized to maintain access to affordable healthcare.

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