Trump's tax bill will gut Medicaid in Indiana

Indianapolis Star

8 hours ago

President Trump's Big Beautiful Bill is set to become law. What's being celebrated in Washington as a political victory will hit Indiana as a health care crisis. Marketed as tax and budget reform, the bill guts Medicaid, strips away insurance protections and enacts policy changes that will leave tens of thousands of Hoosiers without coverage.
For a state that already ranks near the bottom in public health funding, this is deeply irresponsible.
This bill creates unmistakable winners and losers. Wealthier Americans and large employers benefit from extended tax cuts and fewer insurance requirements. States with conservative leadership gain more control over Medicaid, allowing them to cut spending with less federal oversight. Meanwhile, the losses fall squarely on working families, rural communities and people with chronic illness.
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Giving Indiana more control over Medicaid isn't inherently harmful. But in Indiana, where leaders have consistently underfunded public health and pushed for tighter eligibility, that control is likely to mean stricter rules, fewer benefits and more people losing coverage.
Indiana's hospitals will absorb roughly $800 million in unpaid care, leading to higher bills, strained clinics and more Hoosiers forced into medical debt. Patients who rely on comprehensive plans may find themselves stuck with stripped-down policies that exclude mental health, maternity care or treatment for serious illness. The people who need care the most are the ones being asked to sacrifice.
The bill cuts Medicaid by more than $1 trillion nationwide, according to the Congressional Budget Office. In Indiana, 2.3 million people rely on Medicaid, including children, seniors and low-income workers. New work and paperwork requirements are expected to knock tens of thousands of Hoosiers off the rolls.
These are bureaucratic obstacles that force families to choose between treatment and financial stability.
Supporters claim the bill will root out fraud and encourage work. But with Indiana ranked 48th in public health funding, we are in no position to absorb cuts of this scale.
Medicaid is not a handout. It is a lifeline for working families. This bill severs it, leaving thousands vulnerable to financial and health crises. The Center for American Progress estimates the legislation will add $36 billion in uncompensated care costs nationwide, with Indiana's share at roughly $800 million.
Those costs will strain hospitals, raise premiums and burden families already struggling to afford care.
This bill is a failure of health policy. Health care is not optional. It is as essential as public education or clean water. Cutting coverage for thousands of Hoosiers does not save money. It shifts the burden onto families who cannot afford to get sick.
Trump calls it beautiful. In Indiana, it's nothing but brutal.