Several states facing budget shortfalls are considering rolling back adult Medicaid coverage and implementing coverage caps.
Here are three states Becker’s has covered so far this year:
Former Virginia Gov. Glenn Youngkin introduced a budget proposal last December that includes a $2,000 cap on dental services for adult Medicaid recipients.
Del. Rodney Willett proposed an amendment to remove the cap but said it is unlikely to move forward because the state has to address several other healthcare-related priorities. He said the state budget is “hundreds of billions of dollars” in shortfall due to other healthcare initiatives that did not receive funding as part of the budget proposal, along with the impact of the H.R.1 spending bill signed by President Donald Trump in July.
Massachusetts officials are trying to reign in healthcare spending amid rising costs, which lawmakers say includes an increase in the cost of providing care. The state is also facing federal funding cuts tied to the passage of H.R. 1, potentially losing about $3.5 billion each year in federal healthcare funding.
Massachusetts Gov. Maura Healey proposed implementing a $1,000 annual cap on Medicaid dental coverage as part of the state’s budget for fiscal year 2027. Legislators estimate the annual cap could save the state up to $120 million.
Dentists have warned that the cap would barely cover services for patients and would lead to more expensive health issues down the line.
Idaho is facing multimillion dollar budget shortfalls, including a $40 million shortfall for this fiscal year, and a more than $500 million shortfall for the next fiscal year. The state already passed a Medicaid cost-cutting bill in 2025, and it is also facing federal budget cuts from H.R.1.
Gov. Brad Little called for $45 million in cuts to Medicaid, which would include cutting Medicaid dental coverage for adults and people with disabilities.
Lori Wolff, budget director for the state’s financial management division, recently told the state budget committee that many of Gov. Little’s recommendations would require changing state policy.
