Research Briefing
12 Aug 2025
US Medicaid cuts will hit some states harder than others
Millions are expected to lose coverage due to new eligibility rules and the expiration of premium subsidies.
Every state will feel the impact of Medicaid cuts passed in the One Big Beautiful Bill Act as millions will lose access to health insurance due in part to the tightening of eligibility and newly added work requirements. More than any group, immigrants will lose access to Medicaid, Medicare, and Children’s Health Insurance as the new law terminates coverage for many immigrants who had previously been covered.
States with the greatest exposure to eligibility and funding changes include those with the highest Medicaid enrollment as a share of total population and/or those with the largest share of immigrants.
- New York and California are particular stand-outs, but DC, New Mexico, Louisiana, New Jersey, Florida, and Nevada are also vulnerable by these measures.
- Utah, Wyoming, Texas, New Hampshire, North Dakota, and South Dakota face less exposure.
- Louisiana, Oregon, New York, Kentucky, and New Mexico stand to lose the most federal Medicaid funding on a per-capita basis, according to preliminary estimates.
- Federal funding cuts, as well as the expiration of the Marketplace subsidies, will have several economic consequences as the number of newly uninsured will rise significantly, putting more at risk of worse long-term well-being, which will sap productivity growth.

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