Millions of People With Mental Health Issues Could be Affected by Medicaid Cuts

The House’s passing of the budget resolution that cuts Medicaid funding threatens the lives of millions of Americans who rely on the program for mental health care, putting essential services at risk.

For the millions of Americans living with mental health conditions, Medicaid not only serves as a health insurance program for those affected, but as a lifeline that provides access to critical services.

Access to mental health care can be challenging for many, and Medicaid cuts could make it even harder.

Medicaid is the single largest payer for mental health services in the U.S., covering a wide range of treatments, including case management, therapy, medications and crisis intervention.

According to a KFF analysis, in 2020 an estimated 29% of Medicaid enrollees had a mental illness.

In 2007 alone, nearly 12 million visits to U.S. hospital emergency departments involved those with a mental disorder or substance use issue.

Without Medicaid, many of those affected would be left without care, which could increase the burden on folk’s livelihood and the healthcare system.

With less funding, states will also be forced to make difficult decisions about how to distribute their limited resources.

Many states may be forced to scale back Medicaid services, develop eligibility requirements or create cost-sharing measures that could make care unaffordable for low-income consumers.

These acts would affect those with serious mental illness, who rely on consistent treatment to manage their conditions effectively.

Certain populations, including children, pregnant women, low-income families and those with disabilities, would be significantly affected by cuts, according to NAMI.

More than 72 million Americans rely on Medicaid, and many of them have mental health conditions.

According to Mental Health America, the state prevalence of adult mental illness ranges from the lowest of 19.38% in New Jersey to the highest of 29.19% in Utah.

If funding is reduced and mental health needs are left untreated, those affected could experience a number of consequences in care.

According to a 2023 JAMA Network study, untreated and undertreated mental illness is linked with long-term consequences, including reduced quality of life, productivity losses, worsening overall health, unemployment and involvement with the criminal justice system.

The inability to receive appropriate treatment for mental illness comes at a great economic burden to individuals, families and society, the study found.

The National Institutes of Mental Health states that serious mental illness affects 6% of U.S. adults, with young adults aged 18 to 25 experiencing the highest prevalence at 11.6%.

Studies have shown that half of all lifetime mental illnesses begin by age 14, and 75% by age 24.

Early intervention is critical, but without Medicaid coverage, many young people could miss the opportunity for timely diagnosis and treatment.

Mental health advocacy groups have raised serious concerns about these cuts.

For example, National Alliance on Mental Illness (NAMI) warns that restricting Medicaid funding will have far-reaching consequences.

NAMI CEO Daniel H. Gillison, Jr. said in a press release, the urgency of protecting Medicaid, stating that this budget resolution puts access to mental health services at risk and could harm one in three people with mental illness who rely on the program.

“While this setback is disappointing, our fight is far from over,” Gillison said. “Lives are at stake, and we cannot afford to let mental health care take a backseat. As Congress continues to negotiate a path forward on its budget process, NAMI strongly urges federal policymakers to protect Medicaid—and protect mental health—and reject any cuts or new barriers to Medicaid that will limit access to mental health care.”

As lawmakers debate the future of Medicaid, the impact on mental health care remains high.

The proposed budget resolution includes at least $880 billion in cuts to programs overseen by the House Energy & Commerce Committee, including Medicaid.

These potential reductions have sparked much discussion in Congress and across the healthcare sector, with experts and advocates weighing in on the consequences.

The final decision will determine whether millions of Americans can continue accessing the mental health care and other benefits of Medicaid they need to maintain stable lives and their well-being.