Projected Loss of Healthcare and Food Benefits in Pennsylvania

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Healthcare facility in Pennsylvania affected by budget cuts

News Summary

Recent federal budget cuts are set to impact more than 42,000 low-income residents in York and Lancaster counties, threatening crucial healthcare and food assistance programs. Governor Josh Shapiro has raised concerns about the devastating effects these losses will have on vulnerable populations, as Medicaid and SNAP beneficiaries may face stricter work requirements and increased barriers to access. The cuts could potentially hit rural hospitals and local economies hard, raising alarms about the long-term consequences for public health and food security in the region.

York County, Pennsylvania – More than 42,000 low-income residents in York County and Lancaster County are projected to lose crucial healthcare and food assistance benefits due to recent federal budget cuts, commonly referred to as the “One Big Beautiful Bill.” These cuts will affect Medicaid health coverage and the Supplemental Nutrition Assistance Program (SNAP), significantly impacting vulnerable populations.

Estimates from the administration of Governor Josh Shapiro suggest that around 18,720 individuals in York County’s 10th Congressional District are at risk of losing Medicaid, while 6,029 residents face potential loss of SNAP benefits. In Lancaster County’s 11th Congressional District, approximately 13,889 residents are expected to lose Medicaid and another 3,509 could become ineligible for SNAP assistance.

Statewide, it is anticipated that about 310,000 Pennsylvanians may lose Medicaid coverage, and nearly 144,000 could see reductions in SNAP access as a direct result of these budgetary adjustments. Governor Shapiro has characterized these projected losses as “devastating” during a press conference held at WellSpan Health’s Jersey College School of Nursing in York.

The budget cuts will eliminate 9,762 Medicaid recipients in York County alone, leading to an estimated $11 million reduction in SNAP funding within the region. The changes are largely due to new work requirements for Medicaid and SNAP, which mandate that recipients demonstrate employment activities amounting to 20 hours a week to qualify for benefits. Moreover, Medicaid recipients will need to re-qualify for coverage every six months, which could create additional barriers for many low-income residents.

Supporters of the budget cuts, including U.S. Representatives Scott Perry and Lloyd Smucker, argue that these changes are necessary to remove “able-bodied individuals without dependents” from the Medicaid program. They assert that the introduction of work requirements will encourage beneficiaries to seek employment and lift themselves out of poverty. The bill also includes a provision for states to incur a small cost share, aimed at improving accountability in the administration of Medicaid and SNAP programs.

On the other hand, Governor Shapiro has raised concerns regarding the detrimental effects that cuts to Medicaid could have on local healthcare systems that depend on Medicaid reimbursements. In York County, approximately one out of every five residents relies on Medicaid, while about 13% depend on SNAP for food assistance. The anticipated cuts are expected to further increase healthcare costs as the number of uninsured individuals rises, potentially straining public health resources.

The Congressional Budget Office has projected a stark contrast in financial outcomes, predicting that wealthy households could see an increase in annual income by around $12,000, while low-income individuals may face an annual cost increase of $1,600 primarily due to reductions in Medicaid and food aid. Furthermore, the legislation may add an estimated $3.9 trillion to the national debt while disproportionately benefiting the wealthiest individuals through targeted tax breaks.

The federal budget reforms passed in the House of Representatives by a narrow margin of 218-214, with both Perry and Smucker voting in favor. Pennsylvania GOP Senator David McCormick also supported the bill, whereas Democrat Senator John Fetterman opposed it. The Senate vote resulted in a tie of 50-50, broken by the Vice President’s tiebreaking vote.

In addition to impacting healthcare and food assistance, experts warn that the legislation could threaten up to 25 rural hospitals in Pennsylvania heavily reliant on Medicaid funding. Concerns regarding the cuts to SNAP also include possible adverse effects on local farms and businesses that benefit from the program’s purchase activity.

Governor Shapiro has highlighted that funding for SNAP could face a significant shortage due to new cost-sharing measures introduced by the legislation. He has also indicated that rising error rates in the administration of these programs could lead to further elevated costs for Pennsylvania’s budget.

Deeper Dive: News & Info About This Topic

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