House Republican Proposals Cutting Medicaid Could Devastate Indiana’s Seniors and People with Disabilities

The Cutbacks Could Harm 256,300 Indiana Seniors and People with Disabilities Who Depend on Medicaid, Many for Nursing Home and Other Long-Term Care

Washington, D.C.—As Republicans in the House of Representatives pass varying proposals to cut Medicaid, including a new proposal enabling states to reduce program eligibility, a report released today shows these cuts could have a devastating impact on Indiana’s 256,300 seniors and people with disabilities who depend on Medicaid as their lifeline.

The report by the consumer health organization Families USA shows that 10.2 percent of Indiana’s seniors, and 33.9 percent of its people with disabilities, receive health coverage through the Medicaid program.

For many of Indiana’s seniors and people with disabilities, their participation in Medicaid enables them to receive nursing home and other long-term care. Medicaid is the largest payer of nursing home care, and 61.8 percent of Indiana’s nursing home residents receive coverage through the program. This Medicaid coverage saves families from economic devastation, because the average annual cost of a semi-private nursing home room in Indiana was $63,100 in 2010.

In addition, Medicaid pays for care that makes it possible for 24,500 seniors and people with disabilities in Indiana to remain living in their communities.

“Cutting Medicaid would devastate Indiana’s seniors and people with disabilities, especially the many needing nursing home and other long-term care,” said Ron Pollack, Families USA’s Executive Director. “It would also cause havoc in families’ lives as more and more people are forced to give up jobs to take care of their loved ones.”

According to the Families USA report, cutting Medicaid’s long-term care coverage would also have an adverse impact on Indiana’s economy. Based on the latest statistics available, there were 54,000 direct care workers providing long-term care services in Indiana, many of whom would lose their jobs if Medicaid cut back eligibility for long-term care services. Additionally, this direct loss in jobs would have an adverse multiplier effect throughout Indiana’s economy.

Based on the latest data available, in Indiana there were 1.1 million informal caregivers—typically family members and friends—who provided help for seniors and people with disabilities needing long-term care. If Medicaid’s long-term care coverage is diminished, the burden on these caregivers’ lives would increase exponentially.

“Congressional Republicans voting to cut back Medicaid are doing a great disservice to our nation’s seniors, people with disabilities, and their families,” said Pollack. “This is the essence of anti-family budgeting, and we hope it will be reconsidered.”

A specific state fact sheet on this issue for Indiana is available. 

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org