Medicaid Cuts Pose Risks to Viability of Nonprofit Insurers (1)

Proposals to reduce federal Medicaid funding are prompting concerns the cuts could financially devastate nonprofit insurers that contract with the program, industry executives and actuaries say.

House Republicans passed a budget resolution in February that proposes $880 billion in funding cuts over 10 years to programs under the purview of the House Energy and Commerce Committee. The committee oversees federal funding for agencies such as the Centers for Disease Control and Prevention, the Health Resources and Services Administration, and the Food and Drug Administration, but policy watchers say that the bulk of the cuts could come directly from Medicaid.

“There ...