NC State Expert Can Discuss Economic Impact of Potential Cuts to Medicaid

Congress is currently weighing significant cuts to the Medicaid program. Adriana Corredor-Waldron, an assistant professor of economics at North Carolina State University, can provide insight on the potential economic and health system impacts of defunding Medicaid.

“Medicaid is a joint federal-state program, so the precise impact of any cuts will vary based on how individual states respond to reduced federal funding,” Corredor-Waldron says. “States might restrict eligibility, particularly for low-income adults without disabilities or dependents covered by Affordable Care Act expansions, or might reduce optional benefits such as prescription drug coverage and Home and Community-Based Services (HCBS). Rolling back services provided through HCBS could impact the continuum of care for disabled individuals residing in the community and ultimately increase demand for nursing home care – a mandatory benefit all states must provide. 

“At the same time, evidence on Medicaid disenrollment of adults suggests an increase in employment and job-search activities among some newly disenrolled individuals,” Corredor-Waldron says. “However, this research also indicates that around 40% of those disenrolled from Medicaid remained uninsured for many years, limiting their access to essential health care. Long-term disenrollment could thus increase uncompensated care costs for hospitals – particularly in regions with high Medicaid enrollment – since hospitals are obligated to provide emergency care regardless of insurance status.”

Corredor-Waldron can be reached at amcorred@ncsu.edu.