Democratic Mayor's Budget Would Remove 25,000 People From Medicaid

Newsweek

4 days ago

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Democratic Washington, D.C., Mayor Muriel Bowser has proposed a budget that would remove 25,000 people from Medicaid.
The budget would update eligibility requirements for Medicaid in D.C. and subsequently lead to tens of thousands of people being kicked off the health coverage.
Why It Matters
Republicans have touted Medicaid cuts federally, with GOP leaders seeking changes to the program to pass a $2 trillion government spending cut.
However, Democratic cuts to the program are relatively rare. Without access to Medicaid, many low-income D.C. residents would be forced to find other insurance or go without, potentially leading to medical debt and worse health outcomes.
Washington, D.C., Mayor Muriel Bowser addresses a remembrance and reopening ceremony at the Lillian and Albert Small Capital Jewish Museum on May 29, 2025, in Washington, D.C.
Washington, D.C., Mayor Muriel Bowser addresses a remembrance and reopening ceremony at the Lillian and Albert Small Capital Jewish Museum on May 29, 2025, in Washington, D.C.What To Know
Bowser's fiscal 2026 budget would change eligibility to help curb the estimated $182 million increase in Medicaid costs for the city.
"We also have to deal with the fact that Medicaid is growing at a substantially faster clip than the city's revenues," said Wayne Turnage, deputy mayor for D.C. Health and Human Services, as reported by local station WTOP News.
Under the budget, childless adults and adult caregivers would be ineligible if they have an income 138 percent of the federal poverty level or above. This likely would cut off 25,575 residents from Medicaid.
"While any cut to this program is going to be difficult, one silver lining is the city has alternative health plans that could be available to some who are no longer ineligible," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. "Ultimately, this could be a dilemma other cities facing rising expenses have to deal with in the coming years."
Newsweek reached out to Bowser for comment via email.
"When you have such cost inflation, the most pragmatic way to control costs in an entitlement program is to slow spending by reducing the number of people in the program," Turnage said during a presentation Tuesday.
D.C. is facing a $1 billion decline in revenue over the several years, sparking the need to cut programs like Medicaid.
"We think that we will be getting into an unsustainable decision-making loop of, 'I don't want to make hard choices,'" Bowser said.
What People Are Saying
D.C. Mayor Muriel Bowser, during a Tuesday briefing on the budget: "We can't invest in the best schools if we don't have revenue to do that. We can't have the types of human services programs that we've invested in if we don't have revenues.
"If you don't have enough money, something has to go or you have to make more money."
Chris Fong, CEO of Smile Insurance and a Medicaid specialist, told Newsweek: "This type of limitation would eliminate a larger number of DC residents from qualifying for Medicaid. These requirements are more commonly found in Republican leaning states.
"It is surprising from a simply political position, but the current D.C. has been known to go against the more progressive democrat positions."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "D.C. is facing something than just a few years ago would have seemed highly unlikely: a severe reduction in its workforce due to recent labor cuts by the federal government and other major employers. Faced with fewer tax dollars and more expenses, this proposal would make childless adults and adult caregivers whose income is 138 percent of the federal poverty level ineligible for Medicaid."
What Happens Next
The D.C. council is set to debate the proposed changes during the budget process. Voting is expected to take place by early August.
"The options the D.C. mayor has is to either increase the burden on the citizens of the city by increasing taxes or to reduce the number of Medicaid beneficiaries," Fong said. "I think it is likely this will pass given the current state of inflation and the challenges that the average citizen is running into when paying their daily bills."