On Wednesday, participants walked from Karen Hornaday Park to Bartlett Street in response to a House-passed budget bill that includes cuts to Medicaid. Organizers say the proposal could affect hospitals and limit access to care in the region.
The legislation is part of the budget reconciliation process, which allows Congress to pass budget-related bills with a simple majority in the Senate. The proposal would reduce federal Medicaid spending by tightening eligibility rules and lowering reimbursement rates.
Carly Wier is a volunteer with the Protect Our Care coalition, a group that advocates for preserving federal health care programs like Medicaid and the Affordable Care Act. She said the proposed changes would affect 279,000 Alaskans.
“It's like 38% of all Alaskans are connected to and covered by Medicaid, and 57% of our children are covered by Medicaid Here in Alaska, 15% of our seniors. And I think a lot of people hear the word Medicaid, but they don't know what it means” Wier said.

She said Medicaid helps cover one in three births in Alaska, as well as hospice care and behavioral health services.
South Peninsula Hospital is a 22-bed facility serving the southern Kenai Peninsula. It provides emergency care, behavioral health services, and long-term care. Medicaid funding plays a key role in supporting those services.
That’s according to Ryan Smith, the hospital's CEO. He said Medicaid reimbursements account for nearly a quarter of the hospital’s revenue, and that most of that supports patients in the long-term care unit. He said the hospital is trying to plan ahead as Congress considers changes.
“It will certainly be our intention to operate the hospital without having to make reductions to services or to the staff that we have. So we will do our best to adjust to those changes in reimbursement,” Smith said.
Smith said the hospital has contacted lawmakers to share those concerns.
“We have reached out to all of our legislators, both at the federal level and at the state level, and let them know what our concerns are. And so we'll continue to monitor this through the Senate vote next week and see what happens in the reconciliation process,” Smith said.
Organizers from this week’s rally say they plan to continue outreach and are urging residents to contact Alaska’s congressional delegation. A Senate vote on the bill is expected before lawmakers leave for the July recess.