Medicaid and the Aging Population: How Will Budget Negotiations Impact Caregivers and Loved Ones?

A key component of long-term healthcare coverage for many Americans is Medicaid. According to an AARP report, 7 million Americans aged 65 and older, along with 11 million Americans aged 50 to 64, are enrolled in Medicaid. For those aged 65 and older, Medicaid often serves as a "wraparound" to Medicare, covering long-term care needs that Medicare does not, such as nursing home costs and home health care. Additionally, Medicaid provides financial support to family caregivers who manage the care of their loved ones.

Under the current political climate, House Republicans and the Trump Administration are considering ways to reduce federal spending, which may jeopardize the Medicaid program. The House Republican budget plan aims to cut the deficit by $880 billion over the next ten years. Although the budget does not explicitly mention cuts to Medicaid, it instructs the House Energy and Commerce Committee to identify areas for achieving this deficit reduction. The members of the committee face a challenge, as both Medicare and CHIP, which fall under their oversight, were excluded from cuts. A report from the Congressional Budget Office (CBO) indicates that it is impossible for the committee to identify sufficient cuts without impacting Medicaid.

As millions of Americans await the results of these budget negotiations, it's crucial to consider the state of the U.S. economy. During this challenging economic period, more Americans are enrolled under Medicaid and family caregivers depend on programs like Medicaid to help care for their loved ones.

As the U.S. population continues to age, more Americans are finding themselves in the challenging financial position of caring for aging parents while also raising children. This difficulty is compounded by the rising prices of consumer goods and services. During the recent election, voters expressed significant concerns about inflation and increasing costs. Alongside these rising prices, Americans are dealing with stagnant wages, growing credit card debt, escalating rent prices, higher property taxes, and increased healthcare expenses.

Americans are feeling the economic squeeze in various ways, and as our population ages, the costs associated with long-term care will add to the burdens faced by many families. For those considering long-term care facilities for their loved ones, the reality is that this option may no longer be feasible. Nursing facilities are facing challenges such as inadequate staffing and financial constraints, particularly regarding Medicaid and investment shortfalls, which have resulted in subpar care for residents. The 2024 Access to Care report by the American Health Care Association and the National Center for Assisted Living highlights these issues:

- 57% of nursing homes have waiting lists for new residents.

- Since 2020, there have been 62,567 fewer nursing home beds available.

- Since 2020, at least 774 nursing homes have closed, displacing 28,421 residents.

As financial challenges continue to increase, government programs that many Americans have traditionally not relied on may become essential for preserving the quality of life for their loved ones and family caregivers. It is essential that the government safety net programs, which taxpayers have contributed to, remain strong as the country approaches a significant demographic shift known as the "silver tsunami."