Medicaid cuts set to impact all health system users, providers warn

Federal and state cuts to Medicaid and other public assistance programs set to take effect in the months ahead will have an "absolutely devastating" impact on Northwest Indiana's health care providers and all users of their services.

That's the message shared Tuesday with Congressman Frank J. Mrvan, D-Highland, by representatives of a number of community mental health centers and federally qualified health centers primarily serving clients in Lake, Porter and LaPorte counties.

Katie Jasnieski, CEO and executive director of the Swanson Center, which provides mental health and addiction services in LaPorte County, told the three-term lawmaker her organization already has just 89 employees to try to meet the needs of some 110,000 residents.

"About 75% of our clients are Medicaid recipients and that's about 64% of our revenue. So the cuts will be absolutely devastating to our organization's ability to provide services to our community members," Jasnieski said.

Similar concerns were shared by leaders of Porter-Starke Services, which hosted the event, Marram Health Services, HealthLinc, NorthShore Health Centers, Regional Health Services, Community HealthNet, 219 Health Network and Edgewater Health.

"We're all large employers in the area ... and I can tell you our staff are scared," said Rachel Sanchez, NorthShore chief operating officer. "People are very scared about what this impact will do, obviously, for their employment and for our patients."

Spending and tax cut plans recently approved by the Republican-controlled U.S. Congress and the Republican-controlled Indiana General Assembly put at risk the continued Medicaid health coverage of some 200,000 of the 750,000 people (27%) living in Mrvan's congressional district, including an estimated 98,000 children and 15,000 senior citizens and disabled individuals.

Each of the providers emphasized that cutting Medicaid spending does not eliminate Hoosiers' health needs. Instead, they said the costs of emergency rooms and uncompensated care simply will be passed along to other health system users, including many individuals with high-deductible health insurance plans who already can't afford to access care.

"I personally believe it's cruel," said Mrvan, who voted against the Medicaid reductions and new eligibility and work requirements included in the "Big Beautiful Bill Act" championed by Republican President Donald Trump.

"As we move forward, I want to make sure you know that you have an advocate and a partner in not backing down in making sure we reinstate the funding."