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The Texas Reporter > Blog > Economy > Medicaid’s Function in Small Cities and Rural Areas – Offended Bear
Economy

Medicaid’s Function in Small Cities and Rural Areas – Offended Bear

Editorial Board
Editorial Board Published May 18, 2025
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Medicaid’s Function in Small Cities and Rural Areas – Offended Bear
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In analyzing the Medicaid cuts into consideration by Home Republicans for inclusion in funds reconciliation laws, it’s usually simpler to look at every particular proposal in isolation. However singular opinions doesn’t paint an entire image

It is very important take a step again and take a look at how these proposals would work together with one another and the impression on varied parts of the nation.  In doing so, it’s sure the Medicaid cuts being mentioned would end in 40 states and the District of Columbia ending the Medicaid growth over time. The tip consequence could be taking away protection from practically 21 million low-income individuals together with mother and father, individuals with disabilities, near-elderly adults, and adults with power situations.

This explicit piece by Georgetown discusses the significance of Medicaid for rural communities. Nonetheless, it does miss one key aspect and that’s the assist it renders to rural hospitals and clinics. I must discover a piece to spotlight these points.

Key Findings

  • Non-elderly adults and youngsters in small cities and rural areas are extra seemingly than these residing in metro areas to depend on Medicaid/CHIP for his or her medical health insurance. As a consequence, reductions in federal Medicaid funding being contemplated in Congress usually tend to trigger larger hurt to rural areas and small cities than metro areas.
    • For youngsters that is very true in Arizona, Florida, North Carolina, Virginia, South Carolina, California, Minnesota, Georgia, South Dakota, and Alaska.
    • For adults that is very true in Arizona, New York, Washington, Texas, Kentucky, Virginia, Louisiana, Oregon, South Carolina and Montana.
    • For individuals over age 65, the speed of Medicaid protection is barely decrease in rural areas than metro ones.
  • In six states, at the least half of youngsters residing in small cities and rural areas are coated by Medicaid/CHIP. These embrace New Mexico (59.9%), Louisiana (57.7%), Arizona (55.9%), Florida (51.9%), South Carolina (51.1%), and Arkansas (50.5%).
  • In fifteen states, at the least one-fifth of non-elderly adults residing in small cities and rural areas are coated by Medicaid. These embrace Arizona (35.9%), New York (33.9%), New Mexico (31.6%), Louisiana (30.2%), Kentucky (28.5%), West Virginia (25.5%), Oregon (24.9%), Washington (24.4%), Montana (22.2%), Arkansas (22.0%), Maine (21.9%), Vermont (21.7%), Massachusetts (21.5%), Michigan (21.2%), and Alaska (20.4%).
  • Residents of rural counties with a big share of American Indian or Alaska Native residents and tribal lands usually tend to depend on Medicaid for protection for all age teams, together with seniors.
  • Giant reductions in federal Medicaid funding would put the residents of small cities and rural communities and their well being care methods at severe danger.

One-fifth of individuals in the US dwell in areas which are labeled as non-urban. Residents of rural areas and small cities face extra challenges accessing wanted well being providers in comparison with residents of metro areas for a wide range of causes together with acute supplier shortages, restricted connectivity, and lengthy distances to journey to entry care, usually with out dependable public transportation choices. Residents of rural areas even have worse well being outcomes together with: larger maternal and toddler mortality charges; larger mortality charges from coronary heart illness, most cancers, and stroke; and better charges of psychological sickness and overdose deaths. States with the biggest variety of rural residents embrace Texas, North Carolina, Ohio, Georgia and Pennsylvania and states with the biggest share of inhabitants in rural areas embrace Wyoming, Vermont, Mississippi, South Dakota, and Montana

The residents of rural areas and small cities have decrease incomes on common than individuals residing in metro areas and fewer entry to employer-sponsored medical health insurance. Public protection akin to Medicaid and the Kids’s Well being Insurance coverage Program (CHIP) fill an much more crucial function in these areas than in different areas of the nation. Uninsured charges have come down considerably since passage of the Reasonably priced Care Act (ACA). They do stay larger in small cities and rural areas than in metro areas. Moreso present in states not increasing Medicaid for adults.

Prior to now ten years, 120 rural hospitals have both closed or ceased providing inpatient providers. Hospitals working in rural areas have decrease working margins. This happens in states that haven’t taken up the Reasonably priced Care Act Medicaid growth for adults. In a wrestle to maintain their doorways open, many rural hospitals decide to shut much less profitable items akin to maternity wards. In 2022, a slight majority of rural hospitals (52%) now not had maternity wards in comparison with 36% of city hospitals. Rural hospital closures have adversarial financial results on rural communities and restrict entry to care.

Findings

As proven in Determine 1, in 2023 40.6% of youngsters residing in small cities and rural areas have been enrolled in Medicaid/CHIP as in comparison with 38.2% in metro areas. That is the biggest differential within the examined populations. The overwhelming majority of states (38 of 48) have comparable or bigger shares of youngsters in small cities/rural areas coated by Medicaid/CHIP than in Metro areas. See Appendix Desk 1 for state-by-state evaluation.

Equally, non-elderly adults are coated by Medicaid at larger charges in rural areas as in comparison with metro areas (18.3% v. 16.3%), with 40 states out of 48 displaying comparable or larger charges of Medicaid enrollment in rural areas/small cities. See Appendix Desk 2.

Seniors in rural areas and small cities don’t disproportionately depend on Medicaid (15.8% v. 17.0%).2 It’s unclear why seniors would have a distinct sample total. Nonetheless, taking a look at state-specific patterns, within the majority of states — 29 states — bigger shares of seniors in small cities and rural areas have been enrolled in Medicaid than in metro counties, together with in Arizona the place 46.1% of seniors in small cities and rural areas have been enrolled in Medicaid as in comparison with 13.1% in metro counties. See Appendix Desk 3.

A Nearer Have a look at The place Kids’s Medicaid Protection in Rural Areas and Small Cities is Particularly Excessive

As Desk 1 reveals, in six states (NM, LA, AZ, FL, SC, AR) half or extra of the youngsters residing in small cities and rural areas are coated by Medicaid/CHIP. A more in-depth take a look at the counties nationwide with the very best share of youngsters coated by Medicaid/CHIP finds that the highest 20 rural counties within the nation have between 62 and 73 % of youngsters enrolled. These counties are primarily discovered within the six states listed above together with Humphreys County in Mississippi and Wolfe County, Kentucky.

Desk 2 depicts the states with the biggest differential in protection charges for youngsters in rural areas versus metro counties with Arizona and Florida main the best way. For states in Desk 2, cuts in Medicaid funding will seemingly have an outsized impression on households residing in rural communities and small cities.

Lastly, Desk 3 reveals the states with the biggest variety of youngsters in small cities and rural areas enrolled in Medicaid/CHIP, with Texas, North Carolina, Georgia, Kentucky, and Mississippi main the best way.

A Nearer Have a look at The place Grownup Medicaid Protection in Rural Areas and Small Cities is Particularly Excessive

As Desk 4 reveals, there are 15 states the place at the least one fifth or extra of non-elderly adults in small cities/rural areas are coated by Medicaid. Arizona and New York have greater than one-third of rural adults coated by Medicaid. A take a look at the highest 20 rural counties nationwide for grownup enrollment in Medicaid is obtainable in Appendix Desk 5; all of those counties are within the 15 states proven in Desk 3.

Desk 5 illustrates the states the place the significance of Medicaid/CHIP to adults in small cities/rural areas is much more pronounced as in comparison with metro areas and consists of states which have expanded Medicaid protection for adults below the Reasonably priced Care Act in addition to some that haven’t (TX, SC). Arizona once more leads the best way with New York, Washington, Texas, and Kentucky following. For states in Desk 5, cuts to federal Medicaid funding will seemingly have an outsized impression on rural communities.

Influence on Native Folks

American Indian and Alaska Native (AI/AN) individuals are more likely to dwell in non-metro areas (40%). Native peoples face vital challenges to accessing well being care and have larger charges of power situations, akin to diabetes, in addition to larger mortality charges. The Indian Well being Service has been traditionally underfunded and importantly just isn’t a well being insurer however moderately a supplier of well being care providers in accordance with the federal belief duty.

Medicaid performs an important function as an insurer for Native peoples – defending them from excessive out-of-pocket prices. American Indian/Alaska Native youngsters have traditionally had a lot larger charges of Medicaid enrollment than different youngsters. Three quarters of AI/AN individuals dwell within the Southern and Western areas.

Our evaluation finds that Medicaid continues to play an outsize function as a protection supply for individuals residing in counties with giant American Indian and Alaska Native populations – particularly in rural areas and small cities. As Determine 3 reveals, half of youngsters residing in rural AI/AN areas (together with tribal lands) are coated by Medicaid/CHIP. Non-elderly adults and seniors in rural areas are additionally extra more likely to be coated by Medicaid in AI/AN areas.

A more in-depth take a look at the highest twenty rural counties the place seniors have the very best Medicaid protection charges underscores the crucial function that Medicaid performs for indigenous elders, with two-thirds of seniors coated by Medicaid in Oglala Lakota County in South Dakota, which consists completely of the Pine Ridge Reservation, and Apache County in Arizona (which incorporates primarily tribal lands) – far exceeding the nationwide price of below one in 5. Seven of the highest 20 rural counties for seniors enrolled in Medicaid are in South Dakota and all of those counties are in Indian Nation, seniors in these counties have Medicaid enrollment charges starting from 39 to 66 %. See Appendix 6 for the complete record of counties with excessive shares of seniors coated by Medicaid.

Conclusion

Rural communities face larger challenges than metro areas in retaining their well being care infrastructure sturdy sufficient to assist rural residents’ well being wants. American Indian and Alaska Native individuals are additionally at grave danger; Medicaid is a key insurer defending these households from medical debt.

Giant cuts to Medicaid at the moment being contemplated by Congress pose very extreme threats to rural communities. Hospitals and different suppliers in rural communities are already working on tighter margins and disproportionately depend on Medicaid for his or her affected person revenues. Households and non-elderly adults in rural areas depend on Medicaid for his or her medical health insurance at larger charges than these residing in metro areas, underscoring that enormous cuts may have dire penalties for communities which are already struggling.

Extra Studying

“Medicaid Performs Key Function for Maternal and Toddler Well being in Rural Communities,“ Georgetown College

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