Region's healthcare center leaders sound alarm on Medicaid cuts

Indiana wounded by last year's $1 billion shortfall in covering Medicaid costs

The future of Medicaid serving the health needs in northwest Indiana got a hearing from leaders of 8 community health centers in Lake, Porter, and LaPorte counties.

The outlook was grim from those healthcare executives in U.S. Rep. Frank Mrvan, Jr.’s First Congressional District who had gathered for a roundtable discussion at the Porter-Starke Health Center in Valparaiso.

Pessimism has spread nationwide following the passage of the One Big Beautiful Bill Act, congressional legislation that restored the tax cuts of 2017 created during President Trump’s first term and were set to expire in 2025. The bill also reduces over $1.2 trillion in federal spending, primarily from Medicaid and SNAP nutrition funding.

According to the Congressional Budget Office which scores federal legislation, the bill’s requirements for Medicaid participation are projected to reduce coverage for 10.2 million people by 2034.

Medicaid participants aged 19-64 are required to complete 80 hours of work, training or community service per month to keep their benefits. Some exemptions exist for adults with dependent children ages 14 and under and those with medical conditions.

Medicaid expansion states (Indiana is among the 40 states) are required to recertify Medicaid eligibility every six months; the non-expansion states can do it yearly.

Medicaid pays for 80% of the clients at Community HealthNet Health Centers and Edgewater Health, both based in Gary.

Dr. Janet Seabrook, CEO of Community HealthNet Health Centers said, “There will be an increase on those without insurance which will place the burden on hospital emergency rooms.”

Seabrook worries about Medicaid recipients undergoing lifesaving care who will be cut off. “People on chemotherapy, dialysis – will we stop treating them? Who will cover those thousands of dollars in treatment costs?

“We struggled during the last Medicaid cuts and our employees are scared,” said Katie Jasnieski, CEO of the Swanson Mental Health Centers in LaPorte County. “Medicaid covers about 74% of our clients, accounting for 64% of our revenues. The cuts will be absolutely devastating.”

The Swanson Center provides outpatient care for children and adults with serious mental illnesses and offers addiction services.

Mental health services for Medicaid clients are secured with units, allotted for 6 months of care, through the Medicaid Rehabilitation Options program.

“We’re seeing the 6 month allotments not being renewed when we use them up prematurely. We ask for more authorized units to provide care, but they are denied,” Jasnieski said. “The state says the client was medically stable. Only reason why these individuals were somewhat stable is because of the services that they were receiving and we don’t want them to slide back.”

“I don’t think the new bill will impact any of us in a positive way,” Jasnieski said.

The bill comes at a bad time for Indiana. In 2024, the state had to redo its budget to fill a $1 billion shortfall in the costs it had expected to spend for Medicaid, creating waitlists for home-based and other services that are still in place.

“I don’t believe the State of Indiana systems can process redeterminations every 6 months. It’s going to be impossible,” said Joan Bondi, Chief Financial Officer at HealthLinc. “Everybody is going to be on waivers and eligibilities will be pending.”

The April 2025 State of Indiana, Family and Social Services Administration Medicaid Forecast Update showed more than 2 million residents relied on the program for their health care coverage.

Republican House members wrote the OBBA, tagging it as reducing the waste, fraud and abuse in Medicaid.

“We’re the most highly regulated industries in the world, constantly under scrutiny, audited and closely watched. People here are trying to stretch the dollars as far as they can,” said William Trowbridge, President and CEO of Regional Health Systems. “Instead of helping people who need Medicaid, what the bill shows to me is those administrative burdens are trying to strangle Medicaid by finding ways to cut people off.”

The health centers attending the roundtable discussion were the 219 Health Network, Community HealthNet, Edgewater Health, HealthLinc, NorthShore Health Centers, Porter-Starke Services / Marram Health Center, Regional Health Systems, and Swanson Center