Legislative Update: Healthcare Costs, HR 1, and the Federal Government Shutdown

Jinkins_GroceriesDear friends and neighbors,

We’re on day 23 of the federal government being shut down. This is the second-longest funding lapse in modern history, and I have heard from many of you with concerns. Whether it’s being asked to work without pay, threats of mass firings, health care premiums spiking, or the 900,000 Washingtonians abruptly losing access to food assistance on November 1, we’re feeling the consequences of the dysfunction in the other Washington.

While we are wrestling with the uncertainty that comes with this shutdown, what federal programs will continue to function, and for how long, we’re also dealing with the devastating impacts from the Republican Budget Spending Bill (HR 1), passed earlier this year.

HR 1 is, simply put, devastating. In Washington, many low-and moderate-income families, children, people with disabilities, and elderly individuals rely on Medicaid. Many of these individuals will lose coverage directly because of HR 1. Some of these people will lose coverage because of increased administrative burdens, making the health care system costlier and less efficient. Some of these people will lose coverage because of a lapse in ACA subsidies, which will drive up the cost of plans in Washington state significantly (if this sounds familiar, it’s because Democrats in Congress are fighting to protect it right now for the 286,000 Washingtonians who rely on that subsidy). I want to be clear about the severity of these impacts. Right now, we are predicting that:

  • Without ACA subsidies, estimates show that health care premiums for a family of three could increase from $490 to $2,800 annually. Seniors in rural Washington could see increases from $70 to $2,000 annually.
  • Starting in 2027, 73,000+ people in our state who are currently covered will lose that coverage.
  • Without intervention, by the early 2030s Washington expects to see 182,000-250,000 more uninsured people in our state. On the high end, that’s the equivalent of the entire city of Tacoma losing coverage.

Our health care system cannot absorb these changes. The ripple effects of this many people losing coverage will hit all of us. It will overwhelm emergency rooms and community health centers when people cannot access preventative care. It will shutter facilities in rural communities that cannot bear the increased costs, driving more people to seek care in increasingly limited facilities.

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Republicans across the state and across the country are trying to deflect blame for these cuts. There is a reason they delayed implementation so significantly, because these are deeply unpopular policies. Rather than defend the devastating impact of HR 1, Republicans here in Washington are pointing to cuts made at the state level this year as the cause for all concern. I want to be incredibly clear here as well.

  • This year, to help address a $15 billion budget shortfall, we made cuts equivalent to 1.5% of our total Medicaid spending. These cuts were targeted to administrative expenses that wouldn’t reduce service. In two specific cases, we delayed the expansion of new coverage, deferring to a time when we can more readily afford the increases. When you look at our total Medicaid spending at the state level, even including these cuts, we still increased Medicaid spending by $909 million this year.
  • We’re currently estimating that HR 1 will cut $3 billion in Medicaid spending each year, that’s a cut of more than 10% to Medicaid funding. This cut in funding comes with increased administrative burdens, giving us less money to do more.

If you’ve seen drastic increases in your health care premiums for next year, HR 1, and the end of the ACA subsidies, are the cause. Here in Washington, we will do our best to mitigate the impact of these cuts. We have a strong history of fighting to expand access to healthcare. In 2019 we passed SB 5526, which increased the availability of quality, affordable healthcare coverage in our state. We passed HB 1087 to establish a long-term care benefit and fill a need the private market couldn’t, we did both without a single Republican voting yes. In 2024, you upheld the Long Term Care Act at the ballot box, affirming that Washingtonians care about expanding, not restricting, coverage. Since 2019, Democrats have passed $14 billion in healthcare and public health increases to maintain service and improve access. These too have been almost universally opposed by Republicans.

In the other Washington, Republicans control the House, the Senate, and the Presidency. HR 1, and the devastating impacts it will have on health care in Washington state, falls squarely on their shoulders.

I often talk about the importance of bipartisanship, and how working together for our constituents is one of the most important things we can do as state legislators. Much of the work we do in Olympia is bipartisan. I wish more of our work could be. I hope that my Republican colleagues at the state level will join me in pushing back on this impending disaster.

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