Granite Staters Face Uncertain Health Care Future Amid Budget Cuts
Concord, NH – Public health coverage remains a crucial pillar for ensuring health care access in New Hampshire, where over half of residents receive insurance through employers. Currently, 186,319 people, approximately 13% of the population, rely on Medicaid, a critical program supporting low-income residents and individuals with disabilities. Despite recent expansions in public health coverage, nearly 5% of Granite Staters were uninsured in 2023.
Funding for Medicaid in New Hampshire comes from the Medicaid Enhancement Tax (MET), levied at 5.4% on hospital revenue. This tax not only supports the state’s share of Medicaid but also helps hospitals cover the costs of uninsured patients through Disproportionate Share Hospital (DSH) payments. However, with a previous funding agreement expired, proposed budget changes threaten to cut DSH allocations by $138.3 million, a staggering 61% reduction from the current fiscal year.
Additionally, the House’s budget proposal includes a 3% reduction in Medicaid provider rates, which may further strain healthcare services. Potential shifts in federal funding could place additional burdens on the state, compounding existing fiscal challenges. As hospital resources dwindle, access to essential care for Granite Staters may be jeopardized, leaving many vulnerable.
Policy analysts, including Jessica Williams from the NH Fiscal Policy Institute, urge for continued support to maintain health services. With critical budget decisions ahead, the future of health care accessibility in New Hampshire hangs in the balance.
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