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Medicaid and the Road Ahead: Spending Cuts, Work Requirements and What’s Next for States, Providers and Families

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Passed last year, President Trump’s One Big Beautiful Bill Act made significant changes to Medicaid—the primary insurance provider for health and long-term care for people with low incomes. These changes are expected to lead to coverage loss for many current enrollees and will reduce funding for Medicaid, placing new financial pressures on states and health care providers. On July 23, KFF and States Newsroom hosted an event focused on the impacts of work requirements and other federal policy changes on states, health care systems, and people.

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understanding medicaid

Medicaid Financing

Medicaid represents $1 out of every $5 spent on health care in the U.S. and is the major source of financing for states to provide health coverage and long-term care. This brief examines key questions about Medicaid financing and how it works.

Medicaid Program Integrity

This brief explains what is known about improper payments and fraud and abuse in Medicaid and describes ongoing state and federal actions to address program integrity.

Medicaid and Provider Taxes

All states except Alaska cover some state Medicaid costs with taxes on health care providers. This brief uses data from KFF’s 2024-2025 survey of Medicaid directors to describe current practices and the federal rules governing them.

Medicaid and Hospitals

Absorbing reductions in Medicaid spending could be challenging for hospitals, particularly for those that are financially vulnerable. This brief provides data on the reach of Medicaid across hospitals, patients, and charity care.

Medicaid Home Care

This issue brief provides an overview of what Medicaid home care (also known as “home- and community-based services”) is, who is covered, and what services were available in 2025.

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  • What Are States Proposing for Work Requirements in Medicaid?

    News Release

    With the approval of Kentucky’s Medicaid expansion waiver, the Centers for Medicare and Medicaid Services (CMS) has for the first time granted a state permission to make Medicaid eligibility conditional on meeting a work requirement. Nine other states have waivers pending at CMS that would impose work requirements, including Arizona, Arkansas, Kansas, Indiana, Wisconsin, Maine, New Hampshire, Mississippi and Utah. A new brief from the Kaiser Family Foundation highlights what the work requirements would be in…

  • Medicaid: What to Watch in 2018 from the Administration, Congress, and the States

    Issue Brief

    Medicaid provides health insurance coverage for about one in five Americans and is the largest payer for long-term care services in the community and nursing homes. Efforts in 2017 to repeal and replace the Affordable Care Act (ACA) and cap federal financing for Medicaid were unsuccessful but help to set the stage for 2018. As 2018 begins, there is a focus on administrative actions using Medicaid Section 1115 demonstration waivers, state actions on Medicaid expansion,…

  • Next Steps for CHIP: What is at Stake for Children?

    Fact Sheet

    The Children’s Health Insurance Program (CHIP) is an important complement to Medicaid, covering 8.4 million children with family incomes above Medicaid eligibility limits who often lack access to affordable private coverage. Following are key facts that highlight what is at stake for children if there is a failure to extend CHIP funding beyond September 2017 and based on changes proposed in the American Health Care Act (AHCA), which would fundamentally restructure Medicaid by capping federal…

  • Ten Things to Know About Medicaid’s Role for Children with Behavioral Health Needs

    Fact Sheet

    Medicaid currently provides federal matching funds with no pre-set limit to help states cover children with behavioral health needs. Restructuring Medicaid financing as proposed in the American Health Care Act could limit states’ ability to care for these children. The following series of graphics highlights Medicaid’s role for children with behavioral health needs.

  • Medicaid’s Role in Nursing Home Care

    Other Post

    This infographic highlights Medicaid’s role for nursing home care. It includes information about the nation's growing long term care need and the role Medicaid plays as the primary payer for nursing home care. It also discusses the potential impact of proposals to limit federal Medicaid financing.

  • The Great Medicaid Divide

    From Drew Altman

    In his Axios column, Drew Altman examines how the core views Republicans have about Medicaid differ from those of Democrats and Independents, and how those views drive the policy changes they are proposing for the program.

  • Kaiser Health Tracking Poll – June 2017: ACA, Replacement Plan, and Medicaid

    Feature

    As the Senate prepares to vote on the Republican plan to repeal and replace the Affordable Care Act and limit federal Medicaid funding, a new Kaiser Family Foundation Tracking Poll finds the Affordable Care Act itself remains far more popular than the bill that would replace it. A majority of Republicans, however, continue to support the Republican plan, though by a significantly narrower margin than last month. Furthermore, the Tracking Poll finds that the most…

  • The Opioid Epidemic and Medicaid’s Role in Treatment: A Look at Changes Over Time

    Feature

    This chart pack provides data on opioid addiction, overdose deaths, hospitalizations, and emergency department visits from 2005-2015. It also includes data on Medicaid’s growing role in covering people receiving treatment for opioid addiction, and discusses the potential impact of Medicaid restructuring as proposed in the Better Care Reconciliation Act, the Senate's bill to repeal and replace the Affordable Care Act.