Why proposed federal funding cuts are raising red flags across the U.S. health care system

This content is sponsored by the National Health Council.

Amid ongoing talks in Washington about slashing federal spending, health care leaders across the country are raising red flags.

The potential for cuts to programs such as Medicaid, Affordable Care Act subsidies and medical research has many advocates warning of consequences that could ripple through hospitals, clinics and patients’ lives.

“Patients are really concerned,” said Randy Rutta, CEO of the National Health Council, a nonprofit organization that provides a united voice for the 160 million people living with chronic diseases and disabilities and their family caregivers. “We can always find efficiencies, but cuts to programs that don’t reinvest that money right back into health care are pretty concerning.”

Among the communities most vulnerable to potential funding cuts are people living in rural areas, where health care infrastructure is already fragile.

The lack of access to providers and services can have a serious impact, especially for patients who are managing chronic illnesses or disabilities.

“Some of these gaps have been longstanding,” Rutta said. “Some of the ways in which our system is organized has never really reached those far rural areas, or in some cases, even deep into an urban area.”

In those regions, access to specialists and even basic care can depend heavily on federally supported safety net programs.

“People in rural areas are relying on those programs, particularly Medicaid and Medicare, to really have access to the services they need,” Rutta explained.

Colorado Democratic Rep. Diana DeGette, who represents the state’s 1st Congressional District in the U.S. House, cited recent polling showing that 81% of Americans support Medicaid and oppose cuts to the program.

“Because of Medicaid cuts, we have been hearing so much from rural hospitals and health care providers that they’re going to have to go out of business,” DeGette said. “We know that in some rural areas, if the hospital goes out of business, that’s health care for the whole community and it’s also jobs for the whole community.”

For people living in small towns or remote areas, traveling long distances to receive care can be a major burden.

In some cases, the hassle and cost of travel are enough to discourage patients from seeking the care they need altogether.

“If you’re a person with a chronic condition, a disability or maybe a recent illness that needs repeated visits, that’s a lot of drive time,” Rutta said. “For all of us, there are other expenses in our lives, and so the cost of that commute is really challenging.”

Research and supply chain at risk

Another area drawing concern is federal support for medical research.

Agencies such as the National Institutes of Health, along with academic research institutions, play a key role in developing new treatments and medical technologies.

“That really is the lifeblood of how it is patients improve access to new medicines and new devices, and it’s how the United States stays best in class,” Rutta said. “We truly are almost miraculous in what we’re able to accomplish on behalf of patients and their families in that space, and we don’t want to see that undermined.”

According to DeGette, support for continued investment in medical research spans political lines, even in a deeply divided Washington.

“We are the leader in the world, and everybody looks to us,” DeGette said. “People from both parties and across the spectrum have really sounded the alarm about what this would do to our ability to detect diseases around the world, to find cures and to find vaccines.”

In addition to cuts to federal programs, another major topic in Washington has been trade policies, such as tariffs, that could further impact the health care system.

For example, tariffs on imported medical supplies can drive up costs and strain an already fragile global supply chain.

“It’s a very real impact,” Rutta said. “It calls into question whether that supply chain is reliable for patients or the medical community around them that wants access to sterile equipment and supplies.”

Rising costs and potential shortages could delay treatments, threaten procedures and delay access to essential medications.

DeGette said the U.S. should work toward manufacturing more medical supplies and pharmaceuticals domestically to reduce reliance on foreign imports.

She acknowledged, however, that the system isn’t currently built that way.

“While we’re working on those supply chain issues, we need to make sure that we’re not inadvertently putting huge tariffs on those kinds of supplies coming in from other countries, because we’re relying on them right now,” DeGette said.

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