Hobbs says Medicaid cuts would devastate Arizonans in rural areas and hike up insurance rates

PHOENIX — Federal cuts to Medicaid could shut down Arizona hospitals in rural areas and potentially cause a wake of destruction, according to Arizona Gov. Katie Hobbs.

“It will devastate these communities. Some of these health centers or hospitals are the largest employer in these communities and it will cause the loss of jobs, if these places have to close,” Hobbs told KTAR News 92.3 FM’s Outspoken with Bruce and Gaydos on Thursday.

How would federal Medicaid cuts affect Arizonans?

Not only would it affect people on Medicaid, but the cuts could also lead to the increase of insurance rates for everyone else, Hobbs said.

“As it stands a couple hundred thousand folks will lose coverage. What the Senate is looking at is going to be probably worse,” Hobbs said in regard to President Donald Trump’s One Big Beautiful Bill.

Trump’s bill is proposing close to $900 billion in spending cuts, the majority of those cuts are from the Medicaid program.

Arizona stands to lose billions in federal funding that the state doesn’t have the capacity to cover, if Trump’s bill is passed, Hobbs said.

Another portion of the bill seeks to implement stricter work requirements for those on the program, while Arizona already has work requirements, Hobbs said,

“People who can work, should work. I support that. The work requirements in the house bill are so rigid and it requires so much more administrative burden on people to jump through these hoops,” Hobbs said.

Earlier today, Hobbs met at a roundtable with health care providers and leaders to discuss the impact of what the federal cuts on Medicaid would mean for their communities.

“In border and rural communities like ours, Medicaid is often the only path to care. It supports prenatal visits, behavioral health, cancer screenings — basic care that keeps families together and whole. This plan puts that lifeline at risk,” CEO of Mariposa Community Health Center, Amy Taylor said on a Thursday a press release. 

The Associated Press contributed to this report.

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