Up to 89,000 New Mexicans could lose their Medicaid coverage and six to eight rural hospitals could close within 18 months under Republican health care cuts that Sen. Ben Ray Luján and Senate Democrats are now trying to reverse through new legislation.
Luján led Senate Democratic leadership Wednesday in introducing the “Protecting Health Care And Lowering Costs Act” to overturn provisions in the “One Big Beautiful Bill Act” that President Donald Trump signed July 4. The Republican legislation includes at least $800 billion in cuts to Medicaid and Affordable Care Act programs over 10 years.
The stakes are particularly high for New Mexico, which leads the nation in per capita Medicaid coverage with 764,407 residents enrolled — nearly 40% of the state’s population, according to healthinsurance.org. The New Mexico Health Care Authority estimates the Republican cuts would subject 254,000 New Mexicans to new work requirements and eliminate the state’s $1.5 billion Healthcare Delivery and Access program, which represents 10% of New Mexico’s entire Medicaid budget.
“Sixty years after Medicare and Medicaid opened the door to health care for millions, Congressional Republicans slammed it shut with their Budget Betrayal – ripping coverage from 15 million Americans, including over 100,000 New Mexicans,” Luján said in a news release. “Their cuts target children, families, and seniors who depend on Medicaid to survive, and could force rural clinics and hospitals to close their doors.”
The timing of the Democratic legislation coincides with the 60th anniversary of Medicare and Medicaid, programs created in 1965. Luján was joined by Senate Democratic Leader Chuck Schumer of New York, Finance Committee Ranking Member Ron Wyden of Oregon, Sen. Jeanne Shaheen of New Hampshire and Budget Committee Ranking Member Jeff Merkley of Oregon.
The Republican health care cuts were packaged within a broader tax and spending bill that passed the Senate 51-50 on July 1 and the House on July 3 before Trump signed it on Independence Day. The legislation extends Trump’s 2017 tax cuts while implementing work requirements for Medicaid recipients and other restrictions.
Rural hospitals face particular vulnerability under the cuts. The New Mexico Health Care Authority specifically identified Carlsbad Medical Center among six to eight rural facilities that could close within 18 months, serving hundreds of thousands of residents across vast geographic areas.
The health care program serves as a crucial safety net in New Mexico, where Medicaid finances 55% of all births in the state. Beyond direct patient care, Medicaid supports the broader health care infrastructure, including school nursing programs that could lose more than half their staff if districts cannot absorb the costs.
“For many, the ‘Big, Ugly Betrayal’ is quite literally a matter of life and death,” Schumer said in a statement. “Too many will now have to make the heartbreaking decision between financial ruin and going without care.”
Republicans defend the legislation as targeting waste, fraud and abuse rather than cutting benefits for eligible recipients. The White House maintains that work requirements will remove “able-bodied adults abusing the system” while protecting coverage for pregnant women, children, seniors and people with disabilities.
However, the Congressional Budget Office projects the Republican bill will result in at least 11 million Americans losing health insurance by 2034. An additional 4.2 million people could lose coverage if enhanced ACA premium tax credits expire at year’s end, which the Republican legislation does not extend.
The Democratic response legislation also faces an uncertain path, requiring 60 votes to overcome a Republican filibuster in the Senate. The entire Democratic caucus has signed on as co-sponsors, according to Luján’s office, but no Republican support has emerged.
Beyond Medicaid, the Republican cuts also trigger automatic Medicare reductions of $490 billion over 10 years due to budget rules that require spending cuts when legislation increases the deficit. These Medicare cuts would begin in October, affecting the health program for elderly Americans that Trump promised to protect during his campaign.
“Democrats will be crisscrossing the country to make sure that the American people know it is Congressional Republicans who are reneging on that promise, ripping away health care from millions so they can give tax cuts to billionaires,” the Democratic senators said in their joint statement.
The Democratic legislation has garnered endorsements from more than 40 organizations, including the American Civil Liberties Union, AFL-CIO, American Heart Association, American Nurses Association, Planned Parenthood Federation of America, and numerous disability rights and healthcare advocacy groups.
For New Mexican families, the stakes extend beyond insurance coverage to fundamental access to care. Hospital closures in rural areas create ripple effects throughout communities, eliminating thousands of jobs and forcing patients to travel hours for emergency care, emergency medical services, and specialized treatments like maternal care and addiction services.