The U.S. Senate's recent reconciliation bill will cut Medicaid funding, resulting in an estimated 11 million individuals losing health insurance, primarily affecting those with substance use disorders. Analysis indicates that Medicaid accounts for 93 percent of substance use treatment claims. Individuals on Medicaid risk overdosing at higher rates than those with private insurance due to socioeconomic factors. Despite the need, around 55 percent of those on Medicaid with substance use disorder are not receiving treatment. The bill imposes stricter reporting and work requirements, further complicating enrollment and retention of coverage.
Medicaid made up 93 percent of claims for substance use treatment, whereas private insurance covered 6 percent.
People enrolled in Medicaid have higher risks of overdosing than those not on Medicaid, due to low income and precarious life circumstances.
Approximately 55 percent of people on Medicaid who met the criteria for substance use disorder were not enrolled in treatment.
The bill will create challenges to state funding by reducing federal contributions and limiting states’ ability to increase provider taxes.
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