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Proposals to cut Medicaid by up to $880 billion over the next decade have raised concerns among state leaders and health officials.  With a projected 29% decline in per-resident state Medicaid funding, many states could be forced to consider raising taxes, cutting other essential programs or scaling back Medicaid services that support behavioral health care. 

The impact at the state level is significant.

According to the Kaiser Family Foundation, in California, potential losses exceeding $15 billion annually could undermine recent investments in mental health and addiction treatment. In Michigan, providers are concerned that already low Medicaid reimbursement rates may drop further, making it difficult to sustain services, particularly in underserved areas. In Colorado, a projected $250 million federal cut could affect up to 60 behavioral health programs, risking job losses and reducing access to care. 

These funding reductions come at a time when many states are working to expand behavioral health services to meet rising demand. Without strong federal support, progress made over the past decade may stall or reverse, leaving vulnerable populations without the care they need.

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