Did trump freeze medicaid ?

did trump freeze medicaid. President Donald Trump’s freeze on federal assistance created confusion and concern Tuesday among state agencies and nonprofits that depend on federal money for operations.

A spokeswoman for the Alabama Medicaid Agency said Tuesday that the agency appeared to have been locked out of its federal funding portal, though it was restored later in the day.  The Alabama State Department of Education said that at least some of its discretionary funding had been affected.

In a memo dated Monday, the White House’s Office of Management and Budget (OMB) announced a freeze on all federal financial assistance, including grants and loans. The move affected both state programs and nonprofits that depend on federal funding for programs.

How does Medicaid work?

The Medicaid program was approved by Congress in 1965.

Medicaid now covers about 90 million people in the United States. That includes about 50% of adults and 80% of children who live in poverty, as well as 43% of non-elderly, non-institutionalized adults with disabilities and 23% of non-elderly adults with mental illness.

In addition, Medicaid covers 5 in 8 people in nursing homes and about 40% of all births in the U.S.

Black, Hispanic, American Indian, and Alaska Native households tend to utilize Medicaid more than other households. Medicaid is the principal source of health insurance for lower-income households. People covered by Medicaid do not pay premiums or deductibles. The program reimburses hospitals, community health centers, physicians, nursing homes, and other medical facilities.

What happens if Medicaid is cut?

Officials at the Modern Medicaid Alliance, an organization comprised of 90 organizations committed to protecting Medicaid, say federal funding cuts would hurt people all across the U.S.

“Medicaid provides millions of Americans with high-quality, affordable health care, including children, older adults, people with disabilities, and nearly 2 million veterans,” a spokesperson for the alliance told Healthline.

“It covers a range of essential services, including preventive care, primary care, hospital stays, and prescription drugs, for those who might not otherwise be able to afford them. As the single largest payer for mental health services in the country, Medicaid covers services to treat substance use disorder, including peer support services and other programs,” the spokesperson added.

Medicaid crucial to addressing healthcare disparities

Did trump freeze medicaid. Kelley said the bottom line is that Medicaid provides an essential service to people who can’t otherwise afford adequate healthcare. “It keeps Americans healthier,” he said.

“Funding reductions would exacerbate the already significant barriers faced by the millions who rely on public health programs,” noted Anu Sharma, the founder and chief executive officer of Millie, a medical provider that focuses on holistic maternity care.

“For them, cuts would mean fewer resources to access care, longer wait times, and potentially even the loss of services altogether. For those working multiple jobs, lacking reliable childcare, or facing transportation issues, these cuts would make it even harder to navigate the system. Reduced funding could also lead to higher out-of-pocket costs or eligibility restrictions, increasing the likelihood that many will forgo necessary care,” she continued.

“Medicaid services are crucial in addressing health disparities. From hospital care to transportation and home health, these services are vital for vulnerable populations who rely on them to manage their health and access to necessary care,” Sharma explained.

Officials at the Modern Medicaid Alliance agreed.

“Medicaid programs are an essential provider for long-term services and supports, including home and community-based services, that enable aging Americans and people with disabilities to live healthier, independent lives,” the alliance spokesperson said.

“Every service Medicaid covers plays a vital role in ensuring individuals and families receive the care they need to stay healthy and thrive.”

President Trump’s Latest Executive Orders Impacting Health Care

1. Affordable Care Act.

President Trump rescinded former President Joe Biden’s order that extended the enrollment periods for Affordable Care Act (ACA) plans in most states, and granted additional funding for third parties aiding enrollment in ACA insurance. While ACA enrollment nearly doubled under the Biden administration to about 24 million people, those gains are attributed primarily to government subsidies that lowered the cost of ACA premiums. The effect this rescission will have on enrollment trends is one thing to watch in the coming years.

2. Drug Pricing.

President Trump issued an order rolling back policies to limit drug spending by Medicaid and Medicare. In particular, he rescinded an executive order that asked the Center for Medicare and Medicaid Innovation (CMMI) to consider new payment and healthcare models to limit drug spending. The former Biden-era order had prompted CMMI to announce in 2023 its intention to test three models aimed at lowering drug costs, none of which have fully gotten off the ground yet. The purpose of President Trump’s rescission is reportedly to facilitate better price negotiations with drug companies, as the second round of Medicare drug price negotiations are slated for 2025. Thus far, 15 drugs have been added to the negotiation list, indicating the administration’s intention to lower prices for those drugs, including Ozempic and Wegovy.

3. Artificial Intelligence.

President Trump has rescinded President Biden’s “Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” which described the federal government’s stance on “responsible” deployment of Artificial Intelligence (AI), including in the health care space. Pursuant to that order, the United States Department of Health and Human Services (HHS) was tasked with establishing an AI task force and developing a strategic plan, which they released at the beginning of January. President Biden’s order, according to the Trump administration, “established unnecessarily burdensome requirements for companies developing and deploying AI that would stifle private sector innovation and threaten American technological leadership.”

4. World Health Organization.

President Trump issued an Order requiring the United States to leave the World Health Organization (WHO), which is consistent with his 2020 push for the United States’ exit that former President Biden blocked shortly after he was inaugurated in 2021. President Trump cites in the Order the “mishandling of the COVID-19 pandemic” and the WHO’s “inability to demonstrate independence from the inappropriate political influence” of other member states. He also stated that the WHO demands unfair payments from the U.S., the top donor to the WHO, when compared to the other member countries. For example, China contributes 90% less to the WHO than the U.S. despite having a larger population.

5. Gender Affirming Care.

The Trump administration has issued an order titled “Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government,” which essentially removes the concept of gender identity from federal government policies and procedures, including removing health care afforded to people on that basis. President Trump also rescinded a number of orders from the Biden-era that promoted protections on the basis of sex and gender identity in schools, and did away with the Gender Policy Council. These new orders are consistent with the President’s promises on the campaign trail and in his inauguration speech, but legal challenges are likely.

6. Immigration.

Another Biden-era policy rescinded by President Trump includes a policy not to arrest people without legal residency at or near “sensitive locations,” which includes hospitals, which Congress had attempted to formalize in 2023. The purpose of the rescission is to boost the ability of the U.S. Immigration and Customs Enforcement (ICE) to enforce immigration laws. The effect on health care is that immigrants could potentially be arrested in hospitals and while receiving medical care. Health care providers and facilities should pay close attention to immigration policy updates under the Trump administration.

7. Covid-19.

President Trump acted to revoke several policies implemented by former President Biden, the purpose of which were aimed at responding to the Covid-19 pandemic and future infectious disease outbreaks by bolstering testing, research into treatments, providing economic relief, and enhancing cooperation with other countries in the event of another pandemic. For the most part, these rescissions remove lingering policies that have run their course after the Covid-19 pandemic.

The possibility that federal Medicaid funding would be shut off overnight spooked advocates already on edge about the program’s future. President Donald Trump vowed on the campaign trail not to seek cuts for Medicare or Social Security, the nation’s major entitlement programs serving mostly retired people. But he did not make the same promise about Medicaid, which pays for health care for primarily low-income and disabled people — approximately 1 in 5 Americans.

Separate from the freeze, congressional Republicans are discussing cutting the nearly $900 billion program, arguing costs have ballooned with enrollment, notably including the program’s expansion to cover more low-income adults. Lawmakers are also eyeing ways to save money for Trump’s other legislative priorities — in particular, extending the tax cuts from his first term that expire at the end of this year.