Over 600,000 Arizonans Could Lose Healthcare From Medicaid Cuts

Gov. Hobbs battles Medicaid cuts that endanger 600,000 Arizonans and economic stability.

Over 600,000 Arizonans could lose healthcare from Medicaid cuts FactArrow

Published: May 9, 2025

Written by Guillaume Morris

A Crisis We Can’t Ignore

Governor Katie Hobbs delivered a stark warning: slashing Medicaid would strip healthcare from over 600,000 Arizonans. She’s joined by an unlikely ally, former Governor Jan Brewer, who fought for Medicaid expansion years ago. Their shared resolve exposes a truth we cannot overlook. Gutting Arizona’s Health Care Cost Containment System (AHCCCS) would devastate families, cripple hospitals, and tank our economy. Why risk so much for so little gain?

Think of a Phoenix warehouse worker, uninsured without AHCCCS, skipping doctor visits to pay rent. Or a Flagstaff grandmother, reliant on Medicaid for diabetes care. These are real people, not statistics. Hobbs’ fight centers on their survival. Yet, some policymakers insist on cuts, cloaking their push in talk of fiscal restraint. Their arguments collapse under scrutiny, and the human cost demands our attention.

An Economic Disaster in Waiting

Medicaid fuels Arizona’s economy. Research confirms every federal dollar spent generates over $1.50 in state activity, creating jobs and boosting tax revenue. Since Arizona expanded Medicaid in 2014, hospitals have saved millions in uncompensated care, and health-sector growth has flourished. Undoing this could cost $30.9 billion in economic output and 300,000 jobs, with rural hospitals at risk of closing. How can we justify such a reckless gamble?

Some claim cuts target 'waste, fraud, and abuse.' Evidence suggests otherwise. AHCCCS has tightened oversight and streamlined processes. Forcing states to cover an extra $88 billion annually—29 percent more per resident—would strain budgets, slashing funds for schools and infrastructure. This approach doesn’t save money; it shifts crushing costs onto states and vulnerable families.

The Human Cost of Cuts

Medicaid cuts would hit Arizona’s most vulnerable hardest. Nationwide, 29 million adults already struggle to afford care, with Black and Hispanic communities facing disproportionate barriers. In Arizona, a state law could end coverage for 550,000 childless adults if federal funds fall below 80 percent. Enrollment gaps and expiring subsidies already threaten access. Why deepen this crisis for those least equipped to cope?

Advocates for work requirements or stricter eligibility argue these foster responsibility. Yet, data shows such rules ensnare low-income workers and people with disabilities in red tape, often costing them coverage. The Congressional Budget Office warns similar federal policies could leave 20 million Americans uninsured. These measures don’t empower; they punish those already stretched thin.

Building a Stronger Future

Hobbs and Brewer’s united front lights the way forward. Preserving AHCCCS protects healthcare, jobs, and fairness. Expanding automatic renewals and outreach ensures families stay covered. Arizona’s recent steps, like boosting maternal health and paying parents as caregivers, prove innovation works. Why tear down a system that delivers when we can strengthen it?

Since 1965, Medicaid has anchored healthcare for low-income Americans, with Arizona’s 2014 expansion cutting uninsured rates and disparities. Public support is overwhelming: 78 percent of Americans favor further expansion. Caps or work rules would reverse these gains, ignoring decades of progress and voter will. We need policies that uplift, not undermine, our communities.

Protecting Medicaid means ensuring no Arizonan faces illness alone. It means hospitals thrive, jobs grow, and equity endures. Hobbs’ stand challenges us to act. We cannot let misguided cuts unravel Arizona’s future. Our families, our economy, our values demand we fight for what’s right.