Maryland faces potential budget emergency under federal health overhaul (WBAL 11)

Monday May 8th, 2017

The state of Maryland potentially faces a budget emergency if the American Health Care Act of 2017 stands as is.

The proposal cuts federal funding for Medicaid by $880 billion, or by 25 percent, over 10 years.

According to an analysis by the Maryland Department of Legislative Services, if the bill stands, Maryland will be on the hook for hundreds of millions of dollars to more than $1 billion just to keep Medicaid benefits at their current level. 

According to the DLS, if the state intends to keep Medicaid benefits at current levels, it will need to pay $145.7 million in fiscal year 2020, $696.6 million in fiscal year 2021 and $1.092 billion in fiscal year 2022.

Baltimore City may be affected disproportionally. Health officials said two-thirds of city children there depend on Medicaid, and half of pregnant women use it. Seniors depend on Medicaid for prescriptions, hearing aids, glasses and nursing home care, and it covers treatment for drug misuse.

"Children's health will suffer. Women's health will suffer. Entire families and older adults will not be able to afford prescription medications, and we are going to see a decline in health overall," Baltimore City Health Commissioner Dr. Leana Wen said.

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