Experts Warn Medicaid Cuts Threaten New Hampshire’s Budget and Health

Phil Sletten – Research Director, New Hampshire Fiscal Policy Institute and Lisa Beaudoin – Disability policy professional, Strategies for Disability Equity joined Protect Our Care NH to highlight the devastating impact of proposed Medicaid funding cuts on New Hampshire’s families, hospitals, and state budget. The discussion focused on how block grants, spending caps, and restrictive reporting measures could force the state to absorb up to $493 million annually in lost federal Medicaid funds, putting essential health care services at risk.

Speakers emphasized that these cuts would leave children, people with disabilities, and working families without access to the care they rely on while deepening New Hampshire’s budget shortfall. With rising health care costs already straining state resources, these cuts could jeopardize hospital funding, increase uncompensated care, and create a crisis for rural health providers.

If these Medicaid reductions move forward, millions of Americans could lose critical coverage, including thousands of Granite Staters who rely on the program for routine and emergency care. Public opinion remains firmly against these cuts, as Americans overwhelmingly support protecting Medicaid and lowering health care costs.

Speakers called on New Hampshire lawmakers to stand up for residents by rejecting these cuts and safeguarding Medicaid’s role in supporting families, hospitals, and the state’s economic health.

“Small changes to Medicaid funding can have a big impact on the rest of the budget,” said Phil Sletten of the New Hampshire Fiscal Policy Institute.”If you were to see a swing in federal funds of tens or hundreds of millions of dollars, that would affect other parts of the state budget around health services and other services to fund that Medicaid shortfall, or Medicaid services themselves may have to change to stay in line with the budget.”

Medicaid plays a big role in supporting people with disabilities, providing essential services such as home and community-based care, specialized therapies, medical equipment, and personal assistance. Cuts to Medicaid could limit access to these vital services, forcing individuals with disabilities to go without necessary care, lose independence, or face institutionalization. Without adequate funding, families and caregivers would bear greater financial and emotional burdens, making it harder for people with disabilities to live with dignity and fully participate in their communities.

“Medicaid home and community-based service waivers are not protected by federal law,” said Lisa Beaudoin of Strategies for Disability Equity. “These services help people with disabilities get dressed, get ready for the day, get to work, go shopping, clean their homes, engage in recreation. Proposed federal cuts could mean a 22% reduction in New Hampshire’s Medicaid funding. The state would face a lot of difficult decisions to compensate for the shortfall in federal funding.”

A recent report from the New Hampshire Fiscal Policy Institute found that potential federal Medicaid policy changes could place significant financial strain on the state budget. With state revenues lagging behind previous years and several major budget obligations already on the table, absorbing additional Medicaid costs could prove difficult.
With these costs already stretching state resources, federal proposed Medicaid cuts—estimated to cost New Hampshire up to $493 million annually—could create an even greater budget crisis.

You can view the full event here, and learn more about the threat to Medicaid here.