Some health reform proposals include reductions in Medicaid benefits i
n favor of a more basic health plan that would cover a broader range o
f Americans, including the uninsured. This study provides data on the
implications of such proposals. With current Medicaid coverage, the st
udy finds that one in five adults experienced serious problems getting
and paying for health care in the past year. In addition, a substanti
al number of Medicaid beneficiaries now have trouble paying for the ba
sic necessities of life; the well-being of these beneficiaries (betwee
n one-quarter and one-half of all beneficiaries) would be placed in je
opardy by proposed cuts in coverage levels and benefits. Medicaid bene
ficiaries report worse health status and greater disability level than
the general public, suggesting that proposals to link Medicaid covera
ge with ability to work should be pursued with caution.