FREELANCERS UNION BLOG

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How Trump’s Attempted Medicaid Cuts Can Impact Freelancers

Recent developments in Washington have raised concerns about potential cuts to Medicaid, the federal health insurance program for low-income Americans. While discussions have primarily centered on Medicaid, any reductions to such social safety net programs could have significant implications for freelancers and independent workers.​

What are the Proposed Medicaid Cuts?

Congressional Republicans are currently divided over how to implement spending cuts to fund President Donald Trump's proposed $4.6 trillion tax cuts, increased border security, and military spending. One area under consideration is Medicaid, which supports over 35 million Americans and cost the federal government $618 billion last year. Some Republicans argue that overhauling Medicaid is necessary to achieve substantial federal savings, while others caution against reducing benefits amid recession risks. ​

The Congressional Budget Office (CBO) has indicated that achieving the targeted $880 billion in spending cuts over the next decade would be impossible without reducing funding for programs like Medicaid, Medicare, or the Children's Health Insurance Program (CHIP). This suggests that significant cuts to Medicaid are a likely component of the proposed budget reductions. ​

Potential Impact on Freelancers

Freelancers and independent workers often lack access to employer-sponsored health insurance. This makes programs like Medicaid crucial for healthcare coverage, especially for lower-income freelancers. Potential cuts to Medicaid could adversely affect this community in several ways:​

  • Loss of Coverage: Reduced funding may lead to stricter eligibility requirements, causing many freelancers who currently rely on Medicaid to lose their health insurance.​
  • Increased Healthcare Costs: Cuts could result in decreased benefits and higher out-of-pocket expenses for medical services, placing additional financial strain on independent workers.​
  • Limited Access to Care: Funding reductions may force healthcare providers to limit the number of Medicaid patients they accept, making it more challenging for freelancers to find accessible care.​

What now?

While the current focus is on Medicaid, any discussions about cutting social safety net programs raise concerns for freelancers who depend on these services for their health and well-being. As budget negotiations continue, it's essential for independent workers to stay informed and advocate for policies that support their access to affordable healthcare.​ We recommend getting a free membership to the Freelancers Union to receive our weekly newsletter, which will have any and all updates for independent workers. You can also learn more about the alternative health insurance options we offer at: https://freelancersunion.org/insurance/health/

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