New Mexico Sun

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Ms. Kari Armijo, Cabinet Secretary | New Mexico Human Services Department

Medicaid cuts threaten healthcare access in rural New Mexico

The recent passage of H.R. 1, a federal reconciliation bill, has sparked concern in rural New Mexico communities such as Carlsbad. The bill includes significant cuts to Medicaid funding, which could have widespread impacts on healthcare access and the local economy.

New Mexico leads the nation in per capita Medicaid coverage, with 836,000 residents enrolled—nearly 40% of the state's population. The cuts amounting to nearly a trillion dollars could result in hospital closures, loss of health coverage, and job losses across rural areas.

"Medicaid is more than a safety net," said New Mexico Medicaid’s Chief Medical Officer. "It’s the backbone of health care in our rural communities." She emphasized that Medicaid supports individuals during vulnerable times and covers 55% of births in the state.

One concern is added cost-sharing for patients. An older patient with diabetes may face increased copays under this legislation, potentially forcing him to choose between essential medications and groceries.

The bill also threatens to eliminate New Mexico’s $1.5 billion Healthcare Delivery and Access program, crucial for hospital funding. This cut could close six to eight rural hospitals within 18 months, including Carlsbad Medical Center.

Furthermore, new work requirements imposed by H.R. 1 could affect roughly 254,000 Medicaid members in New Mexico. Up to 89,000 might lose coverage due to these requirements, which do not account for employment barriers in rural areas or caregiving responsibilities.

"I shared this information with Rep. Gabe Vasquez at a recent Medicaid roundtable," said the Chief Medical Officer. "We need other leaders to step up in a similar way."

Information from this article can be found here.

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