Michigan Senator-elect Abdul El-Sayed has warned that federal Medicaid cuts could increase health insurance premiums for millions of Americans, arguing that hospitals will shift the cost of treating uninsured patients onto those with private coverage.
The newly elected Democrat said reductions in Medicaid funding could trigger a broader healthcare affordability crisis, affecting both people who lose government coverage and those who remain insured.
- Michigan Senator-elect Abdul El-Sayed warns that Medicaid cuts could push health insurance premiums into double-digit increases as hospitals absorb more uncompensated emergency care.
- Public Citizen estimates that 446 US hospitals face heightened risks of closure or service reductions following more than $900bn in planned Medicaid and CHIP spending cuts.
- El-Sayed has expressed willingness to work with President Donald Trump on universal healthcare legislation, including a Medicare for All-style proposal.
Medicaid cuts could increase health insurance costs
During an interview with MS NOW, El-Sayed argued that Americans losing Medicaid coverage would continue to require medical treatment but could delay seeking care until their conditions become more serious.
Without insurance, some patients may increasingly depend on hospital emergency departments, where treatment is generally more expensive than preventive or routine care.
Hospitals treating patients who cannot pay may face greater uncompensated care expenses, adding financial pressure to healthcare providers already struggling with operating costs.
El-Sayed suggested that hospitals could seek to recover some of those losses through higher payments from private insurers.
The resulting financial pressure could contribute to double-digit increases in health insurance premiums. However, the senator-elect did not provide an independent estimate supporting that specific projection.
Abdul El-Sayed, Michigan Senator-elect
The extent to which Medicaid reductions affect private premiums will depend on hospital finances, insurer negotiations, state policies and the number of people losing coverage.
Nearly 450 US hospitals face financial risks
A March 2026 report from Public Citizen identified 446 hospitals at heightened risk of closing or reducing services because of federal Medicaid spending reductions.
The analysis examined the potential consequences of approximately $911bn in planned federal Medicaid and Children’s Health Insurance Program spending cuts over 10 years under the One Big Beautiful Bill Act.
Hospitals serving large numbers of low-income patients are particularly exposed because Medicaid represents a substantial portion of their revenue.
The report found that many vulnerable facilities are located in rural communities or operate under Medicare payment classifications associated with financially challenged hospitals.
Potential consequences include:
- Reduced access to hospital and emergency services.
- Closure of financially vulnerable facilities.
- Staffing reductions and fewer available medical procedures.
- Longer travel distances for patients requiring treatment.
- Additional financial pressure on hospitals serving uninsured patients.
The findings represent projected financial risks rather than confirmed hospital closures.
Democrats prioritize healthcare affordability
El-Sayed identified reversing Medicaid cuts as one of his principal priorities when the new Congress takes office. He also called for ending the US-Iran war and changing the administration’s tariff policies.
Other Democratic leaders have raised similar concerns about healthcare affordability. Senator Patty Murray has criticized Medicaid reductions and the expiration of enhanced Affordable Care Act premium tax credits, warning that households could face substantially higher insurance costs.
Former House Speaker Nancy Pelosi has also linked federal healthcare policy changes to rising premiums and financial pressure on rural hospitals.
The debate comes as Democrats prepare to take control of Congress following the November 2026 midterm elections.
El-Sayed open to working with Trump on universal healthcare
Despite criticizing Trump’s healthcare policies, El-Sayed said he would consider working with the president on legislation expanding affordable coverage.
El-Sayed reiterated his support for Medicare for All. He indicated that he would even support a universal healthcare proposal carrying Trump’s name if it guaranteed coverage for Americans.
El-Sayed said his legislative priorities include reducing the influence of money in politics, improving household finances and expanding healthcare access. His comments suggest that healthcare affordability could become a major policy issue for the incoming Congress.
For insurers, hospitals and consumers, the central question is how changes to Medicaid funding will affect coverage levels, uncompensated medical expenses and the cost of private health insurance.
