Shapiro Administration Highlights Vital Role of Medicaid in Supporting Pennsylvania’s Economy, Keeping People Healthy as Proposed Cuts Threaten Health Coverage for 300,000 Pennsylvanians

Speaker at EventPennsylvania Department of Human Services (DHS) Secretary Dr. Val Arkoosh, Pennsylvania Insurance Commissioner Michael Humphreys, and Pennie Executive Director Devon Trolley visited Union Community Care to discuss the importance of Medicaid in providing health care coverage to millions of Pennsylvanians amid proposed federal cuts to the program, which would kick more than 300,000 Pennsylvanians off their health insurance.

More than three million Pennsylvanians – or 1 in 4 people – get their health care coverage through Medicaid, also known as Medical Assistance in Pennsylvania. With this coverage, Pennsylvanians can see a doctor, fill prescriptions, and access preventive services like health screenings. This coverage is vital to helping people stay healthy, take care of their families, and contribute to our economy.

“All of us know someone – whether its ourselves, a friend, loved one, or a neighbor – who Medicaid has helped. But no matter how you personally get your health care coverage, Medicaid is vital to protecting the health of your community,” said Secretary Arkoosh. “Congressional Republicans’ proposed cuts to Medicaid would be devastating not only for those who would lose their health coverage, but for all of us who would face the real life consequences of crowded emergency departments, increases in the cost of health insurance, and the catastrophic effects on economies and health systems in rural areas. These cuts will create a public health crisis for our Commonwealth, and I am encouraging all Pennsylvanians to contact their federal representatives and urge them to protect this program that is the backbone of our health system and a lifeline for our communities.”

Medicaid is an integral piece of Pennsylvania’s health care system and our economy, and Congressional Republicans’ proposed changes to the Medicaid program will have devasting impacts on the Commonwealth and its residents.

More than 300,000 Pennsylvanians will lose access to Medicaid due to:

  • New eligibility requirements;
  • Increased bureaucratic paperwork because of proposed six-month redeterminations, whether eligibility is determined every six months instead of every year; and
  • New work reporting requirements, which will require more staff and new IT infrastructure.

Pennsylvania cannot backfill or absorb these costs, as these cuts create an unprecedented and unfunded increase in administrative burden on PA DHS that will strain existing operations and divert resources from delivering services to Pennsylvanians. The proposed cuts will also hurt the county and local agencies responsible for eligibility and program support.

The bill also proposes other federal cuts that will further destabilize our health care infrastructure and threaten the closure of hospitals, especially in our rural communities. Half of Pennsylvania’s 65 hospitals serving rural communities operate at a deficit, struggling to survive, and relying significantly on Medicaid to cover the cost of providing care. When hospitals close, it is not just a health care crisis but causes a ripple effect that can become a jobs crisis, an EMS delay crisis, and a public health emergency in the making. These proposed cuts to Medicaid threaten the sustainability of rural hospitals.

After a decade of hard work reducing the number of uninsured Pennsylvanians by nearly 50 percent, hundreds of thousands of Pennsylvanians will lose coverage and become uninsured – increasing strain on our health system through more uncompensated care that will raise health care costs for all Pennsylvanians, including those with private insurance.

“The Congressional Republicans’ bill would have devastating consequences for Pennsylvanians. From unaffordable health care costs to a higher number of uninsured individuals seeking uncompensated care through our hospital systems, this bill should concern every one of us.” said Pennsylvania Insurance Commissioner Michael Humphreys. “Pennsylvanians deserve a system that expands access and affordability, not one that cuts lifesaving care.”

“The proposed reconciliation bill doesn’t just make coverage more expensive—it makes it harder to get. Pennsylvanians could face large increases in premiums and new red tape that makes it a burden to get the coverage they need,” said Devon Trolley, Executive Director of Pennie. “This combination is a one-two punch that puts hundreds of thousands at risk of going uninsured—not because they don’t qualify, but because they can’t afford it or can’t navigate the new bureaucracy.”

Because the state will not be able to backfill or make up for these costs, the proposed cuts will force Pennsylvania to make reductions in eligibility, services, or provider reimbursement rates.

Union Community Care is a healthcare home built on the belief that everyone deserves access to inclusive, whole-person care that strengthens families, fuels communities, and changes lives. Union Community Care offers 360 care – medical, dental, behavioral health, pharmacy, and social support.

“At Union Community Care we do not turn anyone away for inability to pay, but Medicaid ensures more people can access care without fear of unaffordable bills. Medicaid is a tool offering access for all. It allows us to address the causes of the causes – from chronic disease to housing instability – and deliver care that is preventive, not reactive,” said Union Community Care Director of Communications Bri Kozior. “By removing the cost barrier, Medicaid allows patients to establish a consistent care relationship rather than waiting until they need emergency care. Protecting Medicaid isn’t just about healthcare. It’s about economic resilience, workforce stability, and healthy families.”

As of today, Congressional Republicans’ bill needs to pass the U.S. Senate and be signed into law. There are currently no changes to Medicaid. DHS encourages Pennsylvanians who need health coverage or other benefits to apply at any time at www.dhs.pa.gov/COMPASS.  

On-site County Assistance Office (CAO) services are also available if recipients cannot access online services or need assistance that cannot be accessed through the COMPASS website, the myCOMPASS PA mobile app, or by calling the Customer Service Centers at 1-877-395-8930 or 215-560-7226 for people in Philadelphia.    

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