As federal budget proposals progress, potential Medicaid cuts are raising alarms, especially for Utahns who rely on the program for essential healthcare. Medicaid provides affordable prescription coverage to millions, ensuring access to life-saving medications. But what happens if federal cuts go through? Medicaid is a lifeline for 1 in 5 Utahns, providing coverage for vital medications that manage chronic conditions like diabetes, asthma, heart disease, and mental health disorders. Without it, many low-income residents would struggle to afford their prescriptions, worsening health and higher healthcare costs.
How Medicaid Cuts Could Impact Prescription Access
If federal Medicaid cuts are enacted, prescription access will be among the first and most devastating casualties. In Fiscal Year 2021, Medicaid spent $80.6 billion on outpatient prescriptions before rebates, reducing net spending to $38.1 billion. With such a large role in prescription coverage, any cuts would have severe consequences. Currently, Medicaid recipients in Utah pay little to nothing for their prescriptions. Cuts could force them to shoulder much higher costs, making essential medications unaffordable. A 2019 Kaiser Family Foundation study found that higher prescription costs lead to lower medication adherence, resulting in increased hospitalizations and worse health outcomes.
Thousands of Utahns rely on Medicaid for life-saving medications. Cuts could mean fewer covered prescriptions, forcing patients to go without necessary treatments. Research from the National Bureau of Economic Research links Medicaid reductions to poorer health outcomes and increased mortality rates. Local pharmacies especially in rural and underserved areas depend on Medicaid reimbursements. Reduced funding could lead to closures, limiting access to medications and pharmacist consultations.
Rural Utahns may have to travel long distances or pay out-of-pocket for essential prescriptions, exacerbating healthcare disparities. Beyond immediate hardships, Medicaid cuts could strain Utah’s healthcare system. Fewer people affording their prescriptions means more emergency room visits, hospitalizations, and long-term healthcare costs. States that cut Medicaid funding often see increased disability claims, lower workforce productivity, and greater reliance on social services costs outweigh the initial budget savings.
The Importance of Medicaid Prescription Coverage
Nearly 40% of Medicaid beneficiaries rely on prescription drugs to manage their health. Studies show that states expanding Medicaid saw improved medication access, better health outcomes, and fewer emergency hospitalizations. Cutting prescription coverage would reverse these gains, jeopardizing public health and economic stability.
Medicaid prescription coverage is crucial for Utah’s most vulnerable residents. Cuts to funding would raise medication costs, worsen health outcomes, and burden the state’s healthcare system. With potential losses in Medicaid pharmacy reimbursements estimated between $14.5 billion and $17.3 billion by 2031, the stakes are high. Now more than ever, Utahns must advocate for the preservation of Medicaid to protect access to affordable, life-saving medications.
Sources:
Drug Channels. (2024, December). Who will pay for prescription drugs in 2025 and beyond? Drug Channels. https://www.drugchannels.net/2024/12/who-will-pay-for-prescription-drugs-in.html
Utah Medicaid. (n.d.). Preferred drug list. Utah Department of Health Medicaid Pharmacy Program. https://medicaid.utah.gov/pharmacy-program/preferred-drug-list/?utm_source=chatgpt.com
Kaiser Family Foundation. (2023, July 13). Recent trends in Medicaid outpatient prescription drugs and spending. Kaiser Family Foundation. https://www.kff.org/medicaid/issue-brief/recent-trends-in-medicaid-outpatient-prescription-drugs-and-spending/?utm_source=chatgpt.com
Miller, S. (2020, December 9). Medication adherence and public health: A review of recent research. National Institutes of Health. https://pmc.ncbi.nlm.nih.gov/articles/PMC8796920/?utm_source=chatgpt.com
Medicaid and CHIP Payment and Access Commission. (2022, September). Trends in Medicaid drug spending and rebates. MACPAC. https://www.macpac.gov/publication/trends-in-medicaid-drug-spending-and-rebates/?utm_source=chatgpt.com
