1. United States
  2. Ill.
  3. Letter

Preserve Medicaid Funding for Millions of Children and Seniors

To: Sen. Durbin, Rep. Miller, Sen. Duckworth

From: A verified voter in Mt Zion, IL

May 14

I urge you to protect Medicaid funding in the upcoming spending bill. As your constituent, I am concerned about proposals that would significantly reduce this vital healthcare program. Medicaid provides essential coverage to 75 million Americans, including: • 40% of all children • 60% of nursing home residents • 45% of people with disabilities • Millions of working families earning modest wages The program is remarkably efficient, with administrative costs averaging just 3% compared to 12-18% for private insurers. Research from the Kaiser Family Foundation demonstrates that each federal dollar invested in Medicaid generates $1.90 in economic activity. Studies consistently show Medicaid improves health outcomes and reduces mortality. A landmark Oregon Health Insurance Experiment found that Medicaid coverage decreased depression rates by 30%, increased preventive care use, eliminated catastrophic medical expenditures, and improved financial stability for enrolled families. A 2023 National Bureau of Economic Research study found that children with Medicaid coverage are more likely to graduate high school, attend college, and have higher lifetime earnings—generating increased tax revenue that exceeds program costs over their lifetimes. Rather than broad funding cuts that harm vulnerable Americans, I encourage Congress to target specific fraud and abuse issues. The GAO estimates that less than 3% of Medicaid spending involves improper payments—many of which are administrative errors rather than fraud. Strategic investments in program integrity have proven more effective than across-the-board cuts. For example, targeted anti-fraud measures in several states achieved 14:1 return on investment according to HHS data. I understand fiscal concerns but reducing Medicaid funding would devastate healthcare infrastructure nationwide. Medicaid accounts for nearly 20% of all hospital revenue—with rural and safety-net hospitals particularly dependent on these payments. A 2023 American Hospital Association analysis projected that proposed Medicaid cuts could force over 350 hospitals to reduce services or close entirely, eliminating an estimated 160,000 healthcare jobs. During our ongoing healthcare staffing crisis, these layoffs would further compromise care quality and access. In states that previously experienced Medicaid funding reductions, hospital closures increased by 37% within three years. These closures disproportionately affected rural communities, creating “healthcare deserts” where residents must travel over 30 miles for emergency care. The resulting economic impact extends beyond healthcare, as hospitals often serve as major employers and economic anchors in their communities. Congress has the responsibility to protect healthcare for our most vulnerable citizens. Please prioritize Medicaid funding while supporting targeted program integrity efforts that don’t sacrifice essential healthcare for millions.

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