WASHINGTON – Arizona Senators Ruben Gallego and Mark Kelly, alongside Representatives Greg Stanton (D-AZ-4) and Yassamin Ansari (D-AZ-3), responded to two new reports released by the Arizona Health Care Cost Containment System (AHCCCS) and the Arizona Chamber Foundation outlining the devastating impact that Medicaid cuts proposed by Trump and Republicans would have on Arizona families, seniors, people with disabilities, and the state’s health care system.
The two reports show that nearly two million Arizonans rely on Medicaid for health coverage—including more than 750,000 children, over 72,000 seniors and people with long-term care needs, and hundreds of thousands of low-income adults, many of whom work in industries like food service, caregiving, and retail. In some rural and tribal counties, nearly half of all residents are enrolled in Medicaid. Cutting Medicaid would mean fewer Arizonans with health insurance, more untreated conditions, and fewer options for all Arizonans to access care in their own communities.
The AHCCCS report also shows that Medicaid provides critical care for Arizonans facing serious and chronic health conditions—including more than 180,000 receiving treatments for diabetes, 435,000 for heart disease, and 660,000 for respiratory illnesses like asthma and COPD. AHCCCS also covers nearly 65,000 Arizonans undergoing cancer treatment and over 663,000 receiving care for mental and behavioral health conditions.
In addition to the real lives impacted, the Arizona Chamber Foundation report details the broader economic fallout of proposed Medicaid cuts. According to the analysis, a $1 billion reduction in Medicaid spending would result in the loss of 36,400 jobs, $1.7 billion in reduced labor income, and a $3.7 billion hit to Arizona’s economy. If Congress were to eliminate the state’s Medicaid expansion altogether, the impact would be even greater, comparable to the scale of the Great Recession.
“This report confirms what we already know: cutting Medicaid will cause hundreds of thousands of Arizonans to lose coverage, especially our most vulnerable communities. But on top of creating a healthcare crisis, cutting Medicaid will trigger an economic recession. That means rural healthcare providers will lose their jobs, hospitals will close their doors, people will be forced to rely on the ER for basic care, and hardworking Arizonans will foot the bill,” said Senator Gallego.
“I’ve heard directly from Arizona families who rely on Medicaid to afford care for their kids, aging parents, or themselves,” said Senator Kelly. “This is not a budget line item—these are people’s lives. These reports make clear what’s at stake not just for folks on Medicaid, but for our state’s health care system and economy, and I’ll keep working to stop these harmful cuts.”
“Cuts like the ones extreme Republicans are proposing in their budget would mean hundreds of thousands of Arizonans will lose their health care. And it’ll mean hospitals and health care providers in our community would be forced to drastically cut operations or close their doors. That would be absolutely devastating to Arizona’s economy,” said Representative Stanton. “Let’s be clear about one thing: None of this helps lower costs for working families. None of this puts Arizona’s economy in a better position. And it sure doesn’t rein in federal spending – their plan actually increases the deficit, all to give tax breaks to billionaires.”
“Republican cuts to Medicaid are reckless and will devastate Arizona’s healthcare system, economy, and the families who rely on the program for literal life-saving care,” said Representative Ansari. “The impact will be staggering—cutting nearly 7,000 jobs and over $700 million in economic output for AZ-03 alone. Even families that use private insurance will feel pain; rising costs for healthcare providers will be shifted onto private insurers, leading to higher insurance premiums for businesses and individuals.”
While President Trump and Elon Musk are cutting Medicaid to pay for tax cuts for billionaires, Senator Gallego is fighting to protect access for millions of Arizonans. Last month, he held town halls in Phoenix, Douglas, and Sierra Vista to hear directly from Arizonans that would be impacted by potential Medicaid cuts and shared their stories. He also hosted a roundtable with healthcare leaders in Phoenix to discuss how these proposed cuts would impact providers’ ability to care for their communities. Gallego has always been a steadfast advocate for Medicaid. In the state legislature, he worked across the aisle to expand Medicaid in Arizona.
4/10/25