Impact Analysis of the 'Big Beautiful Bill' on Alaska's Healthcare Sector

Alaska is bracing for changes following the passage of the "One Big Beautiful Bill Act" in the US Senate on July 1. The bill, which aims to overhaul federal healthcare and social programmes, has raised concerns among Alaskan officials and healthcare providers.

According to a study by the Alaska Department of Health, just 10 percent of Medicaid recipients in FY2024 accounted for two-thirds of Medicaid spending. With the bill's tighter work requirements, an estimated 27,000 Alaskans could lose their Medicaid coverage, potentially leading to healthcare providers scaling back services, reducing staff, and ultimately caring for fewer people.

Alaska Senators Lisa Murkowski and Dan Sullivan voted in favour of the bill, but Murkowski expressed dissatisfaction, stating it is "not good enough for the rest of our nation."

The work requirements for Medicaid beneficiaries in Alaska necessitate demonstrating proof of employment every six months, creating additional barriers to healthcare access for many Alaskans who work seasonally. This could potentially lead to delayed care in remote locales like Petersburg, where delayed treatment can lead to costly medevacs when treatable conditions become emergencies.

Dr. Casey Gokey, chief medical officer at Anchorage Neighborhood Health Center, discusses the significant wait times and barriers Alaskans receiving Medicaid face when accessing coverage. He underscores the importance of preventative care in Medicaid to reduce costs.

The legislation limits states' use of provider taxes and state-directed payments to enhance federal Medicaid payments. However, this provision does not affect Alaska as it is the only state that has never done this.

The bill includes a $25 billion increase in the Rural Health Transformation Fund, allocating $100 million to Alaska for five years. This fund aims to improve rural healthcare infrastructure and services, but concerns remain about whether it will be enough to offset the potential loss of coverage and services for thousands of Alaskans.

The Food Bank of Alaska is concerned about the compounding effects of these cuts on Alaska's food system and healthcare system. Many of these individuals may rely on SNAP (Supplemental Nutrition Assistance Program) as well as Medicaid, and those who don't may turn to an overburdened charity system to provide meals when facing new healthcare costs.

SNAP puts over $280 million back into Alaska's economy annually through benefits spent at local retailers. The Petersburg Medical Center, one of Alaska's last independent, community-owned hospitals, has contributed nearly $700,000 over the last three years in income-based financial assistance to patients in Petersburg.

The American Cancer Society is involved in the discussion "Hitting Home: How the 'Big, Beautiful Bill' Threatens Alaska," but the Alaska Government Relations Director of the American Cancer Society Cancer Action Network is not explicitly named in the available search results. However, Emily Nenon, Alaska Government Relations Director for the American Cancer Society Cancer Action Network, emphasizes the importance of preventative care in Medicaid to reduce costs.

Alaskans have faced harsh realities before and found ways to adapt and overcome, according to the American Cancer Society. As the impact of the "One Big Beautiful Bill" unfolds, it remains to be seen how Alaskans will navigate these changes and continue to ensure access to quality healthcare for all.