Congress is considering making big changes and cuts to the Medicaid program. These changes could make it harder for people to access insurance coverage and health care services.
Nearly half of all children with asthma in the U.S. are covered by Medicaid or the related Children’s Health Insurance Program (CHIP). Medicaid is also essential for many low-income adults, and adults with disabilities including asthma. For low-income adults and children with allergies to food or other allergens, Medicaid helps them get the care and treatments they need.
Because of Medicaid’s crucial role for people living with asthma and allergies, the Asthma and Allergy Foundation of America (AAFA) strongly supports the Medicaid program and opposes changes such as:
- Block grants
- Spending caps
- Work reporting requirements
These and other measures would reduce or limit care and coverage for millions of people. In addition to harming the health of individuals, it would also strain the entire health care ecosystem.
Block grants are a type of Medicaid funding that would give states a set amount of money instead of funding based on the number of people who need care. This could limit Medicaid’s ability to respond to public health crises or increased enrollment.
Spending caps limit how much Medicaid will spend per person. If health care costs rise or more people enroll, states may have to cut services or limit who can get Medicaid.
Work reporting requirements are rules that would require some Medicaid recipients to prove they are working or looking for work so they can keep their coverage. This rule creates confusing paperwork and can cause people to lose their health insurance – even if they have a job or should qualify for an exemption.
What Is Medicaid and Why Is It Important?
Medicaid is a federal-state insurance program that provides health insurance coverage and long-term services. It supports about 80 million people in the United States.1 Medicaid covers nearly 4 in 10 children and 1 in 5 people overall, including:
- 7.2 million seniors, among them 756,000 nursing home residents2
- 36.8 million children3
- 14 million rural Americans4
- 9.9 million adults with disabilities5
The federal government sets minimum eligibility standards. But states may expand coverage beyond these minimum requirements. For example, in many states, low-income adults qualify for Medicaid coverage whether or not they have children.
Medicaid is a very effective program. It has helped reduce the number of uninsured people in the U.S. from 45 million to 29 million.6 Medicaid is also effective in improving access to care, in supporting financial stability among low-income families, and in improving health outcomes.7
Each state runs its own Medicaid program. They have broad guidelines set at the federal level. Most states have Medicaid managed care programs. They contract with health insurance companies to provide care for enrollees. CHIP covers additional low-income children.
What Benefits Does Medicaid cover?
Medicaid covers a broad range of services. All states must cover certain required services, including:
- Doctor visits
- Hospital services
- Rural health clinic and federally qualified health center visits
- Early and periodic screening, diagnostic, and treatment services for children
All states have also opted to cover prescription drugs. Other key Medicaid services covered in many states include physical therapy, occupational therapy, and speech, hearing, and language disorder services.
Why Is Medicaid Important for People with Asthma and Allergies?
Almost 28 million Americans – nearly 1 in 12 – have asthma. Medicaid is a very important source of care for our community.
- Nearly half (47%) of U.S. children with asthma are enrolled in Medicaid or CHIP.
- Adults enrolled in Medicaid are 2 times as likely to have asthma as adults with private insurance.8
People with food or other allergies who live at low-income levels face barriers to appropriate care and medicine.9 Medicaid is a vital bridge across these gaps.
Why Does the Congressional Budget Resolution Threaten Medicaid Coverage?
The House of Representatives passed a budget resolution directing the Energy & Commerce (E&C) Committee to cut at least $880 billion from programs it oversees, which includes Medicaid. This means lawmakers are proposing major funding cuts that could force states to cut Medicaid benefits, limit who qualifies, or reduce payments to health care providers.
These cuts could seriously impact people with asthma and allergies who rely on Medicaid to pay for doctor visits, medicines, and emergency care. If Congress moves forward with these changes, millions of people may become uninsured. This puts people’s health at risk as well as the stability of health care services. The cost of providing care to uninsured people will pass on to all patients. Hospitals and clinics in rural areas may close, making it harder for all people to access care.
How Can I Help Protect Medicaid?
If you or someone you know relies on Medicaid for asthma or allergy care, we want to hear your story. Please share your experiences with us! We are working to meet with members of Congress and want to make sure they understand how important Medicaid is for our community.
You can help make a difference by sharing your story and speaking up for Medicaid.
Contact AAFA's advocacy team to get involved and protect Medicaid. Kids with Food Allergies (KFA) is a division of AAFA.
Where Can I Learn More About Medicaid?
Learn more about Medicaid by visiting these websites:
- Centers for Medicare and Medicaid Services: https://www.cms.gov/ or http://medicaid.gov
- Kaiser Family Foundation: https://www.kff.org/
- Families USA: https://familiesusa.org/
References
1. Kaiser Family Foundation. (2025, January 31). Medicaid Enrollment and Unwinding Tracker. Retrieved March 19, 2025, from https://www.kff.org
2. Centers for Medicare & Medicaid Services. (n.d.). Seniors & Medicare and Medicaid Enrollees. Medicaid.gov. Retrieved March 19, 2025, from https://www.medicaid.gov/medicaid/eligibility/seniors-medicare-and-medicaid-enrollees/index.html
3. Kaiser Family Foundation. (2025, January 31). Medicaid Enrollment and Unwinding Tracker. Retrieved March 19, 2025, from https://www.kff.org
4. Medicaid and CHIP Payment and Access Commission (MACPAC). (2021, April). Medicaid and Rural Health. Retrieved March 19, 2025, from https://www.macpac.gov
5. Centers for Medicare & Medicaid Services. (2020). Medicaid Enrollees Who Qualify for Benefits Based on Disability. Retrieved March 19, 2025, from https://www.medicaid.gov/medic...sbility-data-brf.pdf
6. Center on Budget and Policy Priorities. (n.d.). Policy Basics: Introduction to Medicaid. Retrieved March 19, 2025, from https://www.cbpp.org/research/policy-basics-introduction-to-medicaid
7. Center on Budget and Policy Priorities. (n.d.). Policy Basics: Introduction to Medicaid. Retrieved March 19, 2025, from https://www.cbpp.org/research/policy-basics-introduction-to-medicaid
8. Centers for Disease Control and Prevention, National Center for Health Statistics. (2015). National Health Interview Survey, 2015. Analysis performed by the American Lung Association Epidemiology and Statistics Unit using SPSS software. Atlanta, GA: Centers for Disease Control and Prevention. Retrieved March 19, 2025, from https://www.cdc.gov
9. Tepler, E., et al. (2022). Health Disparities in Pediatric Food Allergy. Annals of Allergy, Asthma & Immunology, 129(4), 417–423. Retrieved March 19, 2025, from https://www.annallergy.org