Whatcom County leaders ready health systems for budget shortfalls, Medicaid cuts
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- Local leaders convened to address Medicaid cuts impacting 13,000 county residents.
- Officials discussed new funding strategies for services facing federal reductions.
- Gaps in care like respite and youth mental health will guide service priorities.
In a time when millions of people across the country stand to become uninsured amid federal health care cuts, Whatcom County health care officials are working on solutions for local patients.
In late August, regional health care leaders and elected officials from across northwest Washington gathered for a roundtable to discuss the impending challenges to the health and social services systems that are “under unprecedented strain” due to budget shortfalls and future cuts to Medicaid.
“We and our partners felt really strongly that we needed to come together and start talking about potential ideas and ways we can shore up our health and social service safety net in advance of potential shortfalls to the budget on the local level, state level and federal level, as well as impacts to Medicaid,” PeaceHealth Community Health Director Rachel Lucy said in an interview with The Herald.
About 200,000 people in Washington are expected to lose Medicaid coverage as a result of federal legislation. It’s estimated that about 13,000 people will lose coverage in Whatcom County, according to PeaceHealth Government Affairs Director Steve Brennan.
Washington is estimated to lose about $2 billion in federal Medicaid funding over the next four years, Gov. Bob Ferguson announced in May.
Roundtable participants included leaders from PeaceHealth, Unity Care NW, Sea Mar Community Health Centers, health departments in Whatcom, Skagit and San Juan counties, the North Sound Behavioral Health ASO, Family Care Network, and representatives from local health and social service agencies.
Lucy told The Herald one of the main strategies discussed was how communication efforts could be improved among community health partners by supporting current Medicaid beneficiaries to stay enrolled and prevent drops in insurance.
Brennan said partners also discussed funding alternatives for certain services that the Medicaid program has expanded to cover over the last eight years, such as housing support, transportation services and nutrition support. Fewer federal dollars coming in for those programs means new financial streams will need to be identified to continue offering those services.
“How do we redesign how those services are funded and who is responsible for delivering those services so the burden is not in an imbalance? Are there opportunities for private funding or partnership funding between the private and public sectors? Does the state Medicaid program not pay for something that is now covered under a different program? The roundtable was starting that dialogue,” Brennan told The Herald.
Health care providers know there are existing gaps in areas such as respite care and youth mental health services, Lucy said. Local leaders will need to further identify those gaps in health and social services and decide which should be prioritized, Brennan told The Herald.
“As people fall through the gaps, that just increases the cost to the system,” Brennan said. “So a big part of work moving forward is identifying those gaps and figuring out how to close them.”
More roundtable discussions are planned for the coming months ahead of the legislature reconvening in January. Brennan said this work on the front end will prepare the northwest Washington region to bring ideas to lawmakers for consideration.
Lucy emphasized that despite the challenges health care systems are facing, patients will not be turned away from life-saving care.
“Our doors will remain open. We’re not going to turn anyone away from our emergency departments. We know there will be greater strain on the system. But there is reassurance that our communities are readying themselves and will be there,” Lucy said.
As of July, more than 1.9 million Washington residents — about one in five — were enrolled in Apple Health, the state’s Medicaid program, including about 800,000 children, according to the Washington State Health Care Authority.
This story was originally published September 16, 2025 at 5:00 AM.
