US Congress
Blog

Proposed budget cuts could strip health insurance from millions

US Congress

On May 11, the House Energy and Commerce Committee released a plan to cut more than $880 billion from the 2026 federal budget. The Congressional Budget Office (CBO) indicated that such cuts would not be possible without significantly reducing Medicaid funding.

Following the plan’s release, the CBO issued a preliminary analysis projecting that it would reduce Medicaid spending by $715 billion and result in 8.6 million Americans losing their health insurance.

Medicaid, established in 1965, is a joint federal and state program that currently provides health coverage to nearly 30% of Americans — about 77 million people — including children (via SCHIP), pregnant women, people with disabilities, and older adults in nursing homes.

If adopted, this plan would be devastating to people with cancer and those who may develop it in the future. Medicaid coverage leads to greater use of preventive cancer screenings. States that expanded Medicaid saw higher rates of colorectal cancer screening compared to those that did not. Access to insurance also promotes earlier diagnoses, timely treatment, and better survival outcomes.

In simple terms, Medicaid saves lives. Reducing coverage will result in unnecessary deaths. 

A study from Boston University estimated that 28,000 people could die in the first year of these cuts. Regardless of the exact number, research consistently shows that uninsured individuals face worse health outcomes, incur higher costs, and are more likely to die.

Michael Sapienza, CEO of the Colorectal Cancer Alliance, called the proposal a “devastating blow to health care in America,” adding, “Fewer people will receive timely screening for colorectal cancer, and more cases will be diagnosed at a late stage, reducing the odds of survival.”

One controversial component of the proposal includes adding work requirements for Medicaid recipients. While this may appeal to stereotypes suggesting beneficiaries are “lazy” or “on the dole,” it is unlikely to result in significant savings. Only 8% of Medicaid enrollees are unemployed — many of them retired or living in nursing homes.

As of this writing, it remains unclear whether the current version of the plan will advance to the full House for consideration. Some Republican lawmakers have already indicated that they believe the proposed cuts do not go far enough and are pushing for even deeper reductions.

Whether the final plan mirrors the current proposal or becomes more extreme, the outcome is clear: millions could lose health coverage, and many lives will be needlessly lost.

The Colorectal Cancer Alliance will continue to advocate aggressively for the preservation of Medicaid funding. It is critical that members of Congress hear from constituents who oppose stripping health care from children, older adults, people with disabilities, and low-income families.

Please take five minutes to contact your representative. Most have websites where you can submit a message directly. You can also find their contact information here.

 

Top resources