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There Are Concerns Locally Over Potential Changes To Medicaid & Possible Impacts

June 02, 2025 Steve Schwaller

(Spencer)– Proposed cuts to Medicaid being debated in Congress would trickle down to the nation’s smallest communities that rely on that funding to keep providing mental health services. Lawmakers say they’re trimming the budget but intend to keep the most vital services intact. But research by K-F-F Health News shows mental health services are already struggling in rural Iowa. Cuts proposed for Medicaid could force some providers to close their doors. Business owner David Jacobsen in Spencer, Iowa, lost a son to suicide, and says services that helped his son on many occasions are already stretched thin…

“You know, he was trained that if he had suicidal thoughts, to call somebody. And so, we’d immediately get him to the hospital and they’d put him in the Emergency Room. One of those times, he sat there for four hours because they couldn’t find a room for him anywhere in the state of Iowa – and then, by law, they had to handcuff him.”

Jacobsen says while Spencer is small, service cuts at its hospital would be even more far-reaching and affect people needing mental health services even deeper into rural Iowa…

“Spencer’s kind of a hub of northwest Iowa; we’re 90 miles from any town of any size. We’re somewhere in the 11,000 to 12,000 range now, and so, we do draw a lot of people and our hospital is stronger than most. But there’s towns 10 to 20 miles away from us that are not near the size.”

The U-S House has passed a budget resolution containing the proposed Medicaid cuts. It awaits action the Senate, where even some Republicans say the reductions would be too deep.

(Courtesy Iowa News Service)