Daniel Derksen Associate Vice President at Arizona Center for Rural Health | Official website
Daniel Derksen Associate Vice President at Arizona Center for Rural Health | Official website
Republican initiatives to modify healthcare policies could result in thousands of Arizonans losing their coverage, as hospitals might return to a time when emergency departments were crowded with uninsured patients. Changes to Medicaid are anticipated under President-elect Donald Trump and a Republican-majority Congress. The Medicaid expansion allowed by the Affordable Care Act is a potential target for spending cuts, according to an analysis by KFF, an independent health policy research organization.
Arizona has a "trigger law" that would automatically repeal its Medicaid expansion if federal funding drops below 90%, as per research by KFF and the Georgetown Center for Children and Families. In Arizona, this trigger activates when federal matching funds fall below 80%, which could significantly impact the state's program and potentially remove coverage for many enrollees.
Arizona Governor Katie Hobbs is aware of proposals threatening jobs and healthcare access for residents. A spokesperson stated, “While we won’t engage in hypotheticals, the Governor’s Office is working with stakeholders to ensure they are aware of the ramifications of the various proposals and the devastating impact they could have on Arizona families and our economy,” Christian Slater wrote.
Officials from Arizona's Medicaid program confirmed awareness of possible funding cuts and are analyzing potential impacts on AHCCCS members. They noted, “It’s difficult to predict what a potential decrease in enrollment and funding may look like without knowing for certain if there will be a cut and if so, to what extent.”
Medicaid provides insurance primarily for low-income individuals. In Arizona, it covers 2.1 million people under the Arizona Health Care Cost Containment System (AHCCCS). The expansion increased eligibility up to 138% of the federal poverty level.
The reduction in enhanced federal funding could affect over half a million state enrollees. Dr. Daniel Derksen explained that if more than 70,866 Arizonans lose AHCCCS coverage without affording their own insurance, it results in "cost shifting," where expenses shift from government programs to hospitals providing uncompensated care.
A potential drop in federal funding would also repeal the Arizona Hospital Assessment, affecting childless adults covered under Proposition 204.
U.S. Rep. Greg Stanton emphasized fighting to protect the ACA at a roundtable discussion with medical leaders at Valleywise Health Medical Center: “It’s our responsibility to make sure the people of Arizona... know what is actually at stake for people’s lives and their health care.”
Stanton highlighted U.S. House Speaker Mike Johnson's statement about proposing massive ACA reforms if Republicans control both chambers and the presidency.
Healthcare providers assert that ACA expansions improved state residents' health by enabling preventive care access before chronic conditions worsened. Prior expansions improved outcomes at Valleywise Health's emergency department by addressing illnesses earlier.
Dr. Nadeem Kazi expressed concern over losing patient protection provided by ACA: “If we take the ACA away, it's going to be a disaster.”
Stanton stressed educating officials about healthcare cuts' impacts while reaffirming Democratic support for ACA and Medicaid: “We’re going to need Senator John McCains of 2025 and 2026 who are willing to buck... their party... proposing significant cutbacks.”